In a large bowl, combine the sugar, butter, corn syrup, cinnamon, salt and nutmeg. Add peanuts; toss to coat. Transfer to a greased 15-in. x 10-in. x 1-in. baking pan.
Bake at 300° for 20-25 minutes or until bubbly and golden brown, stirring once. Cool on a wire rack; break apart if necessary. Store in an airtight container. Yield: 3 cups.