Preheat your oven to 350°F (175°C) and line a muffin tin with cupcake liners.

In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.

In a large bowl, beat the softened butter and cream cheese together until smooth and creamy.

Gradually add the granulated sugar and continue to beat until light and fluffy.

Add the eggs one at a time, mixing well after each addition, then stir in the vanilla extract and honey.

Slowly incorporate the dry ingredients into the wet mixture until just combined.

Gently fold in the diced peaches and cinnamon.

Divide the batter evenly among the prepared cupcake liners, filling each about two-thirds full.

Bake for 18-20 minutes, or until a toothpick inserted into the center comes out clean.

Allow the cupcakes to cool in the pan for 5 minutes before transferring them to a wire rack to cool completely.

For the frosting, beat together the powdered sugar and milk until smooth and creamy.

Once the cupcakes are completely cool, frost them with the cream cheese mixture.