Preheat oven to 350°F (175°C) and line a 12-cup muffin tin with liners.
Whisk flour, baking powder, and salt in a medium bowl.
Cream butter, sugar, and honey until light and fluffy (3-4 mins).
Beat in eggs one at a time, then mix in vanilla extract.
Alternate adding dry ingredients and milk to the wet mixture.
Gently fold in diced peaches.
Divide batter among cupcake liners, filling 2/3 full.
Bake 18-22 mins until toothpick comes out clean. Cool completely.
Beat cream cheese and butter until smooth.
Mix in honey and vanilla. Gradually add powdered sugar; beat until fluffy.
(Optional) Add peach puree for extra flavor.
Frost cooled cupcakes. Garnish with peach slices or honey drizzle.
Store in fridge up to 3 days. Enjoy!