1. Prepare the Crust:

1. Preheat oven to 350°F (175°C) and grease a 9-inch round cake pan.
2. In a large bowl, cream together butter and sugar until light and fluffy.
3. Beat in eggs one at a time, then stir in vanilla extract.
4. In a separate bowl, whisk together flour, baking powder, and salt.
5. Alternately add the flour mixture and milk to the butter mixture, mixing until just combined.
6. Gently fold in the diced peaches.
7. Pour batter into the prepared pan and bake for 30-35 minutes, or until a toothpick inserted comes out clean.
8. Cool in the pan for 10 minutes before transferring to a wire rack.