Preheat your oven to 350°F (175°C) and prepare a muffin tin with cupcake liners.

In a mixing bowl, whisk together the all-purpose flour, granulated sugar, baking powder, and salt for about 2–3 minutes.

In a separate bowl, cream together the unsalted butter and cream cheese until smooth, then incorporate honey and eggs.

Gradually add the dry mixture to the wet ingredients, alternating with milk, until just combined.

Fold in the diced peaches, distributing evenly throughout the batter.

Fill each cupcake liner about two-thirds full with the batter.

Bake for 18–20 minutes until a toothpick inserted comes out clean.

Let the cupcakes cool in the tin for 5 minutes, then transfer to a wire rack to cool completely.

Beat cream cheese and powdered sugar together until smooth, adding honey if desired, then frost each cupcake.