Preheat your oven to 350°F (175°C). Line a muffin tin with paper cupcake liners and set aside.

In a medium bowl, whisk together the flour, baking powder, and salt. This ensures the leavening is evenly distributed. Set the bowl aside for later.

In a large bowl, beat together the butter, sugar, and honey using a mixer on medium speed. Continue mixing until the texture becomes light and fluffy—this should take about 3 to 4 minutes.

Add the eggs one at a time, mixing thoroughly after each addition. Stir in the vanilla extract. The batter should be smooth and cohesive at this stage.

Alternate adding the dry mixture and the milk to the wet batter. Begin and end with the flour mixture, mixing just until incorporated after each addition. Avoid overmixing to keep the cupcakes light.

Gently fold in the diced peaches using a spatula. The batter will be thick and slightly lumpy from the fruit. Divide it evenly among the cupcake liners, filling each about 2/3 full.

Bake for 18 to 22 minutes, or until a toothpick inserted into the center of a cupcake comes out clean. Let them cool in the tin for 5 minutes before transferring to a wire rack to cool completely.

While the cupcakes cool, make the frosting. Beat together the softened cream cheese and butter until smooth. Add powdered sugar gradually, mixing on low to avoid a sugar cloud.

Add honey and vanilla extract, and continue to beat until fluffy. If using, mix in the peach purée for added flavor and color. Once the cupcakes are fully cool, frost using a piping bag or knife.