Preheat the oven to 400°F (200°C).

Bring water, ¾ cup sugar, cornstarch, cinnamon, and nutmeg to a boil. Stir until thickened, about 1 minute.

Reduce heat to medium and add halved apricots and 1 tablespoon butter. Simmer until heated through, about 5 minutes. Transfer mixture to a 9x13-inch baking dish.

Combine flour, ¼ cup sugar, baking powder, and salt in a large bowl. Cut 7 tablespoons butter into the flour mixture until it resembles coarse crumbs.

Stir milk into the crumb mixture until the topping is just moistened. Spoon topping over apricot mixture.

Sprinkle 2 tablespoons sugar over the topping.