2	c.	all-purpose flour
1½	tsp.	baking powder
1	tsp.	salt
1/3	c.	butter or margarine
½	c.	milk - chilled
2	c.	fresh peaches - peeled and chopped
¾	c.	sugar
¼	tsp.	ground nutmeg
1/8	tsp.	salt
1	tsp.	butter or margarine - softened
		vegetable oil

Combine flour, baking powder and salt; cut in 1/3 cup butter with pastry blender until crumbly.  Sprinkle cold milk (1 tablespoon at a time) evenly over surface; stir with a fork until dry ingredients are moistened.  Shape into a ball; chill.  Roll pastry to 1/8-inch thickness on a lightly floured surface.  Cut 16 (4-inch) circles from pastry.  Combine peaches and next 4 ingredients; stir gently.  Spoon about 2 tablespoons peach mixture onto half of each pastry circle.  Fold each circle in half, and press edges with a fork to seal.  Pour oil to depth of 2 inches into a large heavy skillet; heat to 375 degrees.  Fry pies in hot oil over medium heat until golden.  Drain well on paper towels.