Combine peaches, sugar, flour and nutmeg in a Dutch oven; set aside to allow syrup to form (approx. 15 minutes). Bring peach mixture to a boil: reduce heat to low, and simmer 10 minutes or until peaches are tender. Remove from heat and stir in vanilla and margarine.
Roll half of pastry to 1/8” thickness: cut into a circle to fit a two-quart baking dish. Spoon half of mixture into lightly buttered baking dish; top with pastry. Bake at 475°F for 12 minutes or until lightly browned. Spoon remaining peach mixture over baked pastry.
Roll remaining pastry to 1/8” thickness and cut into 1” strips; arrange in lattice design over peaches. Bake an additional 15-20 minutes until browned.
Allow to cool slightly before serving. Serve with vanilla ice cream.
Perfect for a summer day.