Preheat 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.

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

Beat in the eggs one at a time, then stir in the vanilla extract.

Alternate adding the dry ingredients and the milk to the butter mixture, beginning and ending with the dry ingredients. Mix until just combined.

Gently fold in the sliced peaches.

Pour the batter into the prepared cake pan and spread evenly.

Bake for 40-50 minutes, or until a wooden skewer inserted into the center comes out clean.

Let the cake cool in the pan for 10 minutes before inverting it onto a wire rack to cool completely.

While the cake cools, whisk together the powdered sugar and milk until smooth to make the glaze. Drizzle over the cooled cake.