Place apples in a 13-in. x 9-in. baking dish; add water. Cover and bake at 350° for 30-40 minutes or until tender. Remove from the oven and keep warm. In a small saucepan, combine sugar, flour and nutmeg. Stir in cream. Cook and stir over medium heat until thickened and bubbly. Cook 2 minutes longer. Remove from the heat. Serve warm over apples. Yield: 6 servings.