Preheat your oven to 350°F (175°C) and line a muffin tin with paper liners.

In a large mixing bowl, cream together ½ cup of softened butter and 1 cup of granulated sugar for about 3 minutes.

Add 8 oz of softened cream cheese to the butter and sugar mixture and mix on low speed until smooth.

Incorporate 3 large eggs one at a time and add in 1 teaspoon of vanilla extract.

In a separate bowl, whisk together 1 ½ cups of all-purpose flour, 1 ½ teaspoons of baking powder, and ½ teaspoon of salt, then gradually fold this dry mixture into the wet batter.

Gently fold 1 cup of diced fresh peaches and ¼ cup of honey into the batter.

Fill each muffin liner about two-thirds full with the batter.

Bake in the preheated oven for 18-20 minutes or until a toothpick comes out clean.

In a mixing bowl, combine 8 oz of cream cheese, 2 cups of powdered sugar, and 2 tablespoons of milk and beat until smooth.

Once cooled, frost the cupcakes using a piping bag or spatula.