Preheat the oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.

In a bowl, whisk together the flour, baking powder, and salt. Set aside.

In a large mixing bowl, cream the softened butter and granulated sugar together until light and fluffy.

Mix in the cream cheese until well combined.

Add the eggs one at a time, mixing well after each addition. Then stir in the vanilla extract.

Gradually add the flour mixture, alternating with the milk, until just combined. Do not overmix!

Gently fold in the diced peaches until evenly distributed.

Divide the batter between the prepared pans and bake for 25-30 minutes, or until a toothpick inserted in the center comes out clean.

Allow the cakes to cool in the pans for 10 minutes before transferring them to a wire rack to cool completely.

In a medium bowl, beat the heavy whipping cream with powdered sugar and vanilla extract until stiff peaks form.

Place one layer of cake on a serving plate, spread whipped cream on top, then add the second layer, and finish with more cream and peach slices.