In a medium bowl, combine the flour, sugars, baking powder, and nonfat dry milk. Mix by hand until well blended. Set aside.

In a pie dish (or individual ramekins), add cubed peaches until fruit is almost at top of the dish. Add enough water to fill the dish approximately 1/2 full. Sprinkle the vanilla extract, cinnamon, and nutmeg across the top of the fruit.

Cut the butter into the bowl of dry ingredients until butter is the size of peas.

Sprinkle this dry ingredient-butter mixture across the top of the dish, making sure to cover all of the fruit.

Bake at 350 for 60-75 minutes, or until top crust turns slightly golden brown.

Remove from oven and allow cobber to cool for at least 30 minutes before serving.

Serve with scoop of vanilla ice cream (optional).