Grease 9x9x2 inch baking pan. Set the pan aside. In a large mixing bowl stir together the flour, sugar, baking powder, cinnamon, salt and nutmeg. Cut in butter until mixture resembles coarse crumbs. Set dry mixture aside.
In a medium mixing bowl stir together milk and egg. Add egg mixture all at once to dry mixture. Stir just until moistened. Spread half of the batter evenly in the prepared pan. Arrange apple slices on top of the batter.
Dollop remaining batter by small spoonful’s on top of the apple slices. Bake in a 350 degree oven about 40 minutes or until a wooden toothpick inserted near the center comes out clean. Cool slightly.
If desired, make powdered sugar icing and drizzle on it. Serve warm. Cover and store leftovers at room temperature or in a refrigerator for up to 3 days.
