Preheat your oven to 350°F (175°C). Grease and flour a 9-inch round cake pan.

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

In a large bowl, cream together the softened butter and 1 cup of granulated sugar with an electric mixer until light and fluffy.

Add the eggs one at a time, beating well after each addition. Stir in the vanilla extract.

Gradually add the dry ingredients to the wet ingredients, alternating with the milk, beginning and ending with the dry ingredients. Mix until just combined.

Gently fold in about 3 cups of the sliced peaches into the batter.

Pour the batter into the prepared cake pan and spread evenly. Arrange the remaining sliced peaches over the top of the batter and sprinkle with the 2 tablespoons of granulated sugar for topping.

Bake for 50-60 minutes, or until a wooden skewer inserted into the center comes out clean.

Let the cake cool in the pan for 15 minutes before inverting it onto a wire rack to cool completely.

Optional Glaze: Whisk together the powdered sugar and 1 tablespoon of milk until smooth. Drizzle over the cooled cake.