Preheat & Prepare: Preheat the oven to 350°F (175°C) and line a muffin tin with cupcake liners.
Mix Dry Ingredients: In a bowl, whisk together the flour, baking powder, baking soda, and salt.
Cream Butter & Sugar: Beat the butter and sugar until light and fluffy. Add eggs one at a time, followed by vanilla.
Combine Wet & Dry: Gradually mix the dry ingredients and buttermilk into the butter mixture until just combined.
Fill Cupcake Liners: Spoon the batter into cupcake liners, filling halfway. Add a teaspoon of peach preserves in the center and top with more batter.
Bake: Bake for 18-20 minutes or until a toothpick inserted in the center comes out clean. Let cool completely.
Make Frosting: Beat together cream cheese, powdered sugar, milk, and honey until smooth.
Frost & Garnish: Once cupcakes are cool, frost them and top with diced peaches and sugar crystals if desired.