Preheat oven to 350°F (175°C). Line a cupcake pan with paper liners.
In a bowl, whisk together flour, baking powder, baking soda, and salt.
In a large bowl, beat butter and cream cheese until smooth and creamy.
Add sugar and honey. Beat until light and fluffy.
Mix in eggs one at a time, then add vanilla extract.
Add dry ingredients in two additions, alternating with milk, mixing just until combined.
Gently fold in diced peaches.
Divide batter evenly among liners, filling about ⅔ full.
Bake for 18–22 minutes, or until a toothpick inserted comes out clean.
Cool in pan for 5 minutes, then transfer to a wire rack to cool completely.