Place butter in 9 x 13-inch dish and melt in oven. Remove dish when butter is melted.
Cook peach slices in water with 1 teaspoon cinnamon, nutmeg, 1 tablespoon brown sugar, and vanilla until boiling then turn down to a simmer and cook for about 5 minutes.
Stir together flour, salt, baking powder, milk, and sugar.
Remove peaches from pot with slotted spoon and gently spoon over butter, adding most of the accumulated juices but do not stir.
Slowly pour the flour mixture over the peaches but do not stir. Sprinkle remaining cinnamon and brown sugar over the top.
Bake at 350 for about an hour or until crust is golden brown.
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