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In a large bowl cream together butter with sugar until light and fluffy. Add eggs, one at a time, beating well after each addition.
Add vanilla and mix.
Reserve ¼ cup of the flour and sift remaining flour together with the baking powder and salt. Stir gradually into butter and egg mixture.
Mix reserved flour with chopped peaches and fold into cake batter.
Grease a cake tube pan and sprinkle it with sugar. Pour batter into pan and bake in a preheated oven to 325°G (165°C) for 60 – 70 minutes or until cake tester comes out clean.
Cool cake for 10 minutes and invert onto a rack until cake cools completely.
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