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Preheat your oven to 350°F (175°C). Grease and flour an 8-inch round cake pan or line it with parchment paper.
Prepare the Dry Ingredients:
In a medium bowl, whisk together the flour, baking powder, baking soda, salt, and cinnamon (if using). Set aside.
Cream the Butter and Sugar:
In a large mixing bowl, cream the softened butter and sugar together using an electric mixer or by hand until light and fluffy, about 3-5 minutes.
Add the Eggs and Vanilla:
Add the eggs, one at a time, mixing well after each addition. Stir in the vanilla extract.
Incorporate the Dry Ingredients and Wet Ingredients:
Gradually add the dry ingredients to the wet ingredients, alternating with the sour cream (or Greek yogurt) and milk. Start and end with the dry ingredients, mixing until just combined.
Fold in the Peaches:
Gently fold in the sliced peaches, ensuring they are evenly distributed throughout the batter.
Bake the Cake:
Pour the batter into the prepared cake pan and spread it out evenly. Bake for 35-40 minutes, or until a toothpick inserted into the center of the cake comes out clean. The top should be golden and spring back when lightly pressed.
Cool and Serve:
Allow the cake to cool in the pan for 10 minutes before transferring it to a wire rack to cool completely. Once cooled, dust with powdered sugar if desired and serve.
Serving and Storage Tips
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