1. Preheat oven to 425. In a large bowl, combine peaches, 1/4 cup white sugar, 1/4 cup brown sugar and cinnamon, nutmeg, lemon juice and cornstarch. Toss to coat evenly and pour into a 2 quart baking dish. Bake for 10 minutes.
2. Meanwhile, in a large bowl, combine flour, 1/4 cup white sugar, 1/4 cup brown sugar, baking powder and salt. Blend in butter with your fingertips or a pastry blender, until mixture resembles course meal. Stir in water until just combined.
3. Remove peaches from oven, and drop spoonfuls of topping over them. Sprinkle the entire cobbler with the sugar and cinnamon. Bake until topping is golden, about 30 minutes.