Heat oven to 400 deg.
Combine peaches,sugar,cinnamon,nutmeg and butter in a sauce pan,stirring occasionally,cook until sugar is melted and mixture is slightly thickened. Cool to rm. temp.
Beat egg and water in a small bowl.
Unfold 1 pastry sheet on a baking sheet.Spread the pie filling on the pastry to within 1 inch of the edge. Brush the edges with the egg mixture. Unfold the remaining pastry sheet and place over the filling. Crimp the edges with a fork to seal. Brush with the egg mixture. Cut several slits in the top of the pastry.Bake for 30 minutes or until the pastry is golden brown. Cool the pastry on the baking sheet on a wire rack for 15 minutes. Sprinkle with the confectioners' sugar,if desired.