Heat oil in 4 1/2-quart Dutch oven over medium-high heat. Cook onion and garlic in oil 4 to 5 minutes, stirring frequently, until onion is softened.
Sprinkle turkey pieces with salt, nutmeg and pepper. Stir into onion mixture. Cook 5 to 6 minutes, stirring occasionally, until turkey is no longer pink.
Stir in remaining ingredients except peas. Heat to boiling; reduce heat to medium-low. Cover and cook 18 to 20 minutes or until potatoes are tender.
Stir in frozen peas. Cover and cook 4 to 5 minutes, stirring occasionally, until peas are hot. Remove bay leaves.