In medium bowl, combine flour, baking powder, cinnamon and nutmeg.
In large mixer bowl, cream butter, granulated sugar and brown sugar.
Add eggs, 1 at a time, beating well after each addition.
Gradually beat in dry ingredients alternately with water; stir in 1-1/4 c morsels.
Spoon batter into greased and floured 1" fluted tube pan.
Bake in preheated 35~ oven for 45 to 5 minutes or until pick inserted in center comes out clean.
Cool for 1 minutes. Remove from pan.
Cool completely on wire rack.
GLAZE- in small heavy saucepan over low heat, melt 3/4 c morsels, milk and corn syrup, stirring until smooth.
Cool for 1 minutes; pour over cake.
Serve with ice cream.
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