Drain the peaches, reserving the syrup. Using a fork or potato masher, mash the peaches; set aside. In a heavy medium saucepan, combine sugars, cornstarch, cinnamon and nutmeg. Add the reserved syrup; mix well. Cook over medium heat, stirring constantly until mixture is thickened. Add the butter and lemon juice; then the peaches. Refrigerate until the filling is chilled or overnight.
Dough: Combine flour, sugar, baking powder and salt in a medium bowl. Using a fork or pastry blender, cut in butter. Add the milk and stir until a soft dough forms.
The dough can be made into balls and then rolled out on a floured surface to make 5-6" circles. Also, on a floured surface, the dough can be rolled out to 1/8" thick and then cut out 5-6" circles. (My Grandmother used a saucer to cut out the circles).
Spoon 2 generous tablespoons of filling in the center of the dough, fold and crimp the edges. Be sure the edges are sealed so the filling won't leak. Fill a heavy skillet with about an inch of oil and heat to 360 degrees. Place two or three pies in the hot oil; but do not overcrowd it. Fry until golden brown on each side. Drain the pies on paper towels. Place warm pies on wire rack and glaze.
Combine powdered sugar, milk and almond extract. Drizzle over warm pies. Then combine cinnamon chips and shortening in a microwave safe bowl. Melt the mixture stirring at 15 second intervals. Drizzle over the powdered sugar glaze, if desired.