Drain peaches, reserving 1/2 cup syrup, and arrange in a lonx 6"x 1. 3/4" baking dish. In a small saucepan, stir together sugar, nutmeg, cinnamon and reserved peach syrup; heat, stirring to dissolve sugar. Pour over the peaches. Bake in a preheated 350 degree oven until very hot; 10 to 15 minutes.

Beat milk and JELLO instant pudding mix according to directions on the box. Then add sour cream and mix. Add about 1/4 of whipped topping and mix. Layer vanilla wafers, pudding mixture and bananas; repeat. Place the remaining whipped topping on top of pudding and sprinkle with wafer crumbs.