Preheat your oven to 350°F (175°C) and line a muffin tin with cupcake liners.
Prepare the dry ingredients by whisking together flour, baking powder, baking soda, and salt in a medium bowl.
Cream the butter, honey, and sugar in a large mixing bowl until light and fluffy.
Add the eggs one at a time, mixing well after each addition, then stir in the vanilla extract.
Alternate adding dry ingredients and milk, mixing until smooth and well combined.
Fold in the diced peaches gently to avoid overmixing.
Fill the cupcake liners about ¾ full with batter.
Bake for 18-22 minutes or until a toothpick inserted into the center comes out clean. Let them cool completely.
Make the frosting by beating the cream cheese and butter together until creamy. Gradually add powdered sugar, then mix in honey and vanilla extract.
Frost the cupcakes using a piping bag or spatula, then garnish with peach slices or a honey drizzle.
Serve and enjoy! Store leftovers in an airtight container.