Preheat your oven to 350°F (175°C). Line a 12-cup muffin tin with paper liners to get ready for the batter; this makes cleanup easier and ensures the cupcakes come out easily after baking.
In a medium bowl, whisk together the sifted all-purpose flour, baking powder, and salt. Set this mixture aside—these dry ingredients will be added to the wet mixture later to create a light cupcake texture.
Use an electric mixer to cream the softened butter, granulated sugar, and raw or unfiltered honey together in a large bowl. Beat on medium-high speed for 3-4 minutes, until the mixture is pale and fluffy. This step incorporates air, giving the cupcakes a tender crumb. I like to make sure the butter is truly room temperature, as it makes creaming easier.
Beat in the eggs one at a time, making sure each egg is fully incorporated before adding the next. Once both eggs are mixed in, add the vanilla extract and mix until combined. This creates a silky, cohesive batter.
With your mixer on low speed, add the dry ingredient mixture (from Step 2) to the wet mixture (from Steps 3 and 4) in three parts, alternating with the milk. Start and finish with the dry mixture. Mix just until combined to avoid overworking the batter, which can make cupcakes dense.
Gently fold the finely chopped peaches into the cupcake batter, being careful not to overmix. Divide the batter evenly among the prepared cupcake liners, filling each about 2/3 full. Bake the cupcakes for 18-22 minutes, or until a toothpick inserted in the center comes out clean. Allow them to cool completely before frosting. For ultra-moist cupcakes, don’t overbake!
In a clean bowl, beat the softened cream cheese and room temperature butter together until smooth and creamy. Add the honey and vanilla extract, mixing until fully blended. Gradually beat in the sifted confectioners' sugar until the frosting is smooth and fluffy. If desired, add the peach puree at this stage for extra fruit flavor and a hint of color—I like to swirl a little in at the end for a pretty marbled effect.
Once the cupcakes are completely cool, frost them generously with the cream cheese frosting (from Step 7). For extra flair, garnish with fresh peach slices or a light drizzle of honey. Store the cupcakes in the refrigerator for up to 3 days. Enjoy!