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In a saucepan, combine sugar, cornstarch, cinnamon and nutmeg. Stir in water; bring to a boil over medium heat. Boil and stir for 1 minute; reduce heat. Add apricots and butter; heat through. Pour into a greased 2-quart baking dish.
Topping
1 cup all-purpose flour
1 tablespoon granulated sugar
1 1/2 teaspoons baking powder
1/2 teaspoon salt
3 tablespoons cold butter or margarine
1/2 cup milk
Combine flour, sugar, baking powder and salt in a bowl; cut in butter until crumbly. Stir in milk just until moistened. Spoon over hot apricot mixture. Bake at 400 degrees F for 30 to 35 minutes or until golden brown and a wooden pick inserted into the topping comes out clean.
Yields 6 servings.