Mix berries, water, 1 cup sugar, 1/4 tsp. Salt, and lemon in large, wide saucepan. Bring to a boil. Reduce heat and simmer 5 minutes.
For Dumplings: combine flour, 1 Tbsp. Sugar, baking powder, 1/4 tsp. Salt, nutmeg, and milk. Stir until mixed. Drop by Tbsp into berry mixture. Cover tightly and simmer 15 minutes.
Serve hot with vanilla ice cream or fresh whipped cream.
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