For the Cake:

1.  Preheat the oven to 350 degrees.
2. Mix together the flour, baking powder, nutmeg, and salt in a medium bowl. Set aside.
3. In another medium bowl or the bowl of a stand mixer, beat together the butter and the sugar.
4. Beat in the eggs, one at a time.
5. Stir in the flour mixture.
6. Gently fold in 3/4 of the peaches (reserving 1/4 for the topping)
7. Scoop the batter into the cupcake pan.
8. Bake until the cupcakes are set and golden brown, about 15 minutes.
9. Remove from the oven and set on a cooling rack. Allow the cupcakes to cool to room temperature before topping with the crème fraîche, remaining fresh peaches, and caramel sauce.

For the Caramel Sauce:

1. Heat the granulated sugar in a medium saucepan over medium heat, stirring constantly with a wooden spoon until the sugar melts into a thick amber-colored liquid. Be careful not to burn the mixture.
2. Once sugar is fully melted, add the butter. Heads up: the caramel will rapidly bubble when the butter is added. Just keep stirring until the butter is completely melted, about 2 minutes. (If you notice the butter separating or if the sugar clumped up, remove from heat and whisk to combine it again).
3. Next, slowly drizzle the heavy cream while continuing to stir. Again, the mixture will rapidly bubble when the cream is added. Allow the mixture to boil for 1 minute.
4. Remove the mixture from heat and stir in the salt. Allow to slightly cool down before using the sauce on the cupcakes. The caramel will thicken as it cools. If it’s too thick, you can reheat in the microwave or on the stove to desired consistency.