Place apples in a 13" x 9" x 2" baking dish, add water. Bake covered at 350 degrees for 30 to 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. Remove from heat. Serve warm over apples.