1Heat oven to 375°F. Grease 8-inch square (2-quart) glass baking dish. In 4-quart saucepan, mix peaches, brown sugar, cornstarch, lemon juice, cinnamon and nutmeg. Mix gently and cook over low heat about 10 minutes or until peaches are just tender and syrup has thickened. Pour into baking dish.
2In large bowl, stir together Bisquick mix and 3 tablespoons granulated sugar. Using two knives or pastry blender, cut in butter until mixture looks like coarse crumbs. Add milk and vanilla, and quickly blend together with spatula.
3Drop heaping tablespoonfuls biscuit mixture on top of peaches, covering them completely. Sprinkle with 1 tablespoon granulated sugar.
4Bake 25 to 35 minutes or until golden brown.