Preheat and Prep: Start by preheating your oven to 350°F (175°C). Line a standard 12-cup muffin tin with cupcake liners. The liners not only make cleanup easier but also help the cupcakes maintain their shape.

Whisk Dry Ingredients: In a medium bowl, whisk together the sifted flour, baking powder, and salt until well combined. Sifting the flour helps create a lighter texture in your finished cupcakes. Set this mixture aside.

Cream the Butter and Sweeteners: In a large mixing bowl, use a hand mixer or stand mixer fitted with the paddle attachment to cream together the softened butter, sugar, and honey until the mixture becomes light and fluffy, about 3-4 minutes. Don't rush this step—proper creaming incorporates air into the batter, resulting in fluffier cupcakes.

Add Eggs and Vanilla: Beat in the eggs one at a time, making sure each egg is fully incorporated before adding the next. This prevents the batter from curdling. Mix in the vanilla extract until just combined.

Combine Wet and Dry Ingredients: Gradually add the dry ingredients to the wet mixture, alternating with milk. Start and end with the flour mixture (adding about ⅓ of the flour, then ½ the milk, another ⅓ flour, remaining milk, and final ⅓ flour). Mix on low speed just until combined after each addition. Over-mixing can lead to tough cupcakes, so be gentle!

Fold in Peaches: Using a rubber spatula, gently fold the diced peaches into the batter until evenly distributed. The peaches should be small enough to distribute well throughout the cupcakes but large enough to provide juicy pockets of flavor.

Fill Cupcake Liners: Divide the batter evenly among the prepared cupcake liners, filling each about ⅔ full. I find using a cookie scoop helps achieve consistent sizes.

Bake to Perfection: Place the muffin tin in the preheated oven and bake for 18-22 minutes, or until a toothpick inserted into the center of a cupcake comes out clean with just a few moist crumbs. The tops should spring back lightly when touched.

Cool Completely: Allow the cupcakes to cool in the tin for 5 minutes, then transfer them to a wire rack to cool completely before frosting. Patience is key here—frosting warm cupcakes will cause the frosting to melt!

Beat Butter and Cream Cheese: In a large bowl, beat the softened cream cheese and butter together until completely smooth and creamy, about 2-3 minutes. Make sure both ingredients are properly softened to avoid lumps.

Add Honey and Vanilla: Mix in the honey and vanilla extract until well combined. The honey adds a wonderful smoothness and subtle flavor that complements the cupcakes perfectly.

Incorporate Powdered Sugar: Gradually add the sifted powdered sugar, about ½ cup at a time, beating on low speed to avoid a sugar cloud! Once all sugar is incorporated, increase the speed to medium-high and beat until the frosting is light and fluffy, about 2 minutes.

Optional Peach Boost: For an extra punch of peach flavor, gently fold in the peach puree if using. This will give your frosting a beautiful pale peach color and enhance the fruity flavor profile.