Preheat the oven to 350°F (175°C) and line a muffin pan with 12 cupcake liners.

In a bowl, whisk together the all-purpose flour, baking powder, baking soda, and fine salt.

In a separate bowl, beat together the softened butter, cream cheese, granulated sugar, and honey until fluffy and pale, about 2 to 3 minutes.

Mix in the eggs one at a time, then add the vanilla and scrape down the bowl.

Add half of the dry mixture, followed by the milk, then the remaining dry mixture. Mix just until smooth.

Toss the diced peaches with 1 tablespoon of flour and gently fold them into the batter.

Divide the batter among the cupcake liners, filling each about two-thirds full. Bake for 18 to 21 minutes until the tops spring back and a toothpick comes out with a few moist crumbs.

Let the cupcakes cool in the pan for 5 minutes before transferring them to a rack. Cool completely before frosting.

In a mixing bowl, beat the cream cheese and unsalted butter until smooth. Add the powdered sugar, a pinch of salt, vanilla, and honey to taste. Beat until creamy and spreadable.

Chill the frosting for 10 minutes if the kitchen is warm for a smoother swirl and cleaner edges.