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Place oven rack in lowest position. Preheat oven to 325°F. Place roasting rack in shallow roasting pan. Mix poultry seasoning, paprika, seasoned salt, garlic powder, pepper and nutmeg in small bowl.
Place turkey, breast-side up, in prepared pan. Sprinkle about 1/2 of the seasoning mixture inside turkey. Stuff with onion and bay leaves. Brush turkey breast with oil. Spread remaining seasoning mixture over entire surface and under skin of turkey. Add 1/2 cup water to pan. Cover turkey loosely with heavy duty foil.
Roast 1 hour. Remove foil. Roast 2 to 2 1/2 hours longer or until internal temperature reaches 165°F (175°F in thigh), basting occasionally with pan juices. Remove turkey from oven. Let stand 20 minutes. Transfer to platter or carving board to slice. Reserve pan juices to make gravy or to serve with turkey.