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Grease a 9x5 inch loaf pan and line with parchment paper. Preheat oven to 350 degrees F. 325 degrees F for glass bake ware.
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Sift together the flour and baking powder and set aside.
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Cream the butter and sugar very well. Beat in the vanilla extract.
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Beat in the eggs, one at a time, beating well after each addition.
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Fold in the flour and baking powder mixture alternately with the milk. When folding wet and dry ingredients always begin and end with the dry ingredients. In general, I add the dry ingredients in 3 portions and the milk in two portions.
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Gently fold in the chopped peaches by hand using a rubber spatula.
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Spread batter evenly into the prepared loaf pan and bake for about an hour to an hour and 15 minutes. (The baking time here is likely going to vary considerably, depending on the juiciness of the peaches and the varying sizes of loaf pans in general. Let the toothpick test be your guide to when this cake is completely baked. If you find the cake is browning too much on top, reduce the heat by 25 degrees for the last of the baking time.
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Cool the cake in the pans for 15 minutes before lifting it out onto a wire rack to cool completely. If serving the cake warm, you can glaze it after it has been out of the oven for about 30-40 minutes.