HEAT oven to 325°F Have ready 10 x 6 x 1 1/2 inch OR 8-inch square glass baking dish.
COMBINE cranberries and water in saucepan and boil over high heat until the berries pop, about 5 minutes. Mix 1 cup sugar and cornstarch thoroughly and stir gradually into boiling mixture. Boil over high heat 1 minute. Stir in butter and nutmeg. Pour into baking dish.
SIFT flour, baking powder and 1/2 cup sugar into a bowl. Add shortening and cut in finely. Add milk and mix well. Stir in dates, raisins and walnuts. Drop by large spoonfuls on top of cranberry mixture. Sprinkle with 2 tablespoons sugar.
BAKE about 55 minutes or until topping is browned and cooked through. Serve warm with ice cream. Serves 6.