Preheat oven to 400 degrees F. For topping, in a medium bowl stir together flour, the 2 tablespoons sugar, baking powder, salt, and cinnamon. Using a pastry blender, cut in butter until mixture resembles coarse crumbs; set aside.

For filling, in a large saucepan combine the peaches, sugar, water, and cornstarch. Cook over medium heat and stir until slightly thickened and bubbly. Keep filling hot over low heat.

In a small bowl stir together egg and milk. Add egg mixture to flour mixture, stirring just until moist. Transfer hot filling to a 2-quart square baking dish. Using a spoon, immediately drop flour mixture into six mounds on top of filling.

Bake in the preheated oven for 20 to 25 minutes or until topping is golden brown. If desired, serve warm with ice cream.