In a saucepan, combine diced peaches, 0.25 cup brown sugar, 1 tsp cinnamon, and 0.25 tsp nutmeg. Cook over medium heat until peaches soften and release juices.

Add cornstarch slurry (1 tbsp cornstarch mixed with 1 tbsp cold water) to the peach mixture. Stir until thickened, then set aside to cool.

Preheat oven to 350°F (175°C). Roll out the cinnamon roll dough into a large rectangle.

Spread 2 tbsp melted butter over the dough. Sprinkle with 0.25 cup brown sugar and 1 tsp cinnamon.

Evenly spread the cooled peach filling over the cinnamon-sugar layer.

Roll the dough tightly into a log and slice into 12 equal pieces.

Place rolls in a greased baking pan, leaving space between each. Bake for 40 minutes or until golden brown.

Let rolls cool slightly, then drizzle with the icing provided with the cinnamon roll dough. Serve warm.