In a large stockpot, combine diced apples, water (or alcohol), and butter. Cook over low heat for 10 minutes until tender.
Stir in powdered pectin and bring to a rolling boil, stirring constantly.
Add both sugars, cinnamon, and nutmeg. Return to a rolling boil and cook for 1 minute while stirring.
Remove from heat and skim off any foam.
Ladle hot jam into sterilized jars, leaving ¼-inch headspace.
Remove air bubbles, wipe rims clean, and secure lids.
Process jars in a boiling water bath for 10 minutes.
Cool jars on a towel without touching until lids seal. Twist jars gently to distribute apple pieces evenly.