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1. For topping, in a small bowl stir together the flour, the 2 tablespoons sugar, the baking powder, and the nutmeg. Using a pastry blender or 2 knives, cut in butter until mixture resembles coarse crumbs; set aside.
2. For filling, in a large saucepan stir together the 1/2 cup sugar and the cornstarch. Stir in the water. Add the peach slices and cherries. Cook and stir until thickened and bubbly. Keep filling hot while finishing topping.
3. Stir together the yogurt and egg product. Add yogurt mixture to topping mixture, stirring just until moistened.
4. Transfer filling to a 2-quart square baking dish. Using a spoon, immediately drop the topping from a spoon into 8 mounds onto hot filling.
5. Bake in a 400 degree F oven about 20 minutes or until a wooden toothpick inserted into the topping comes out clean. Serve warm. Makes 8 servings.