Peach-Berry Cobbler

1 cup all-purpose flour
1/2 cup white sugar
1 1/2 teaspoons baking powder
1/2 cup milk
1/4 cup butter, softened
1/4 cup packed brown sugar
1 tablespoon cornstarch
1/2 cup cold water
3 cups fresh peaches - peeled, pitted and sliced
2 cups fresh blueberries
1 tablespoon butter
1 tablespoon lemon juice
2 tablespoons coarse granulated sugar
1/4 teaspoon ground nutmeg


Preheat oven to 350 degrees .
In a medium bowl, stir together flour, 1/2 cup white sugar, and baking powder. Mix in milk and 1/4 cup butter until smooth.
In a medium saucepan, stir together the brown sugar, cornstarch, and water. Mix in the peaches and blueberries. Cook and stir over medium heat until thick and bubbly. Mix in 1 tablespoon butter and lemon juice. Continue cooking until the butter melts. Pour into a 1 1/2 quart ungreased baking dish. Evenly spoon batter in mounds over the hot fruit. In a small bowl, mix the coarse sugar and nutmeg, and sprinkle over the batter.
Place the baking dish on a shallow baking pan in the preheated oven. Bake cobbler for about 35 minutes, or until bubbly and a toothpick inserted into the crust comes out clean.