Preheat oven to 400 F. Generously butter a 2-quart baking dish (9x13-inch).
In a saucepan, heat water over medium heat. In a small bowl, combine sugar, cornstarch, salt, cinnamon. Add to water and whisk to combine. Stirring continuously, bring to a boil. Add lemon juice, butter and apples. Stir to combine. Cook 2 to 3 minutes. Pour into prepared baking dish.
In a mixing bowl, combine flour, sugar, nutmeg, and salt. Add cream and mix to form a soft dough. Drop by spoonfuls over the top of the apples. Brush the tops of the biscuits with melted butter and, if desired, sprinkle with additional sugar. Bake in preheated oven 25 to 35 minutes or until biscuits are golden brown and apple filling is bubbling around the edges. Remove from oven and let stand 15 minutes before serving. Makes 8 to 10 servings.