Preheat oven to 400°.
Combine sugar and peach nectar in a 9-inch pie plate. Place nectarine wedges, skin side up, in pie plate. Bake at 400° for 20 minutes or until tender. Spoon hot fruit and syrup evenly into 4 individual serving bowls. Top each evenly with ice cream. Sprinkle with nutmeg, if desired.