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Preheat oven to 350º. Grease a 10-inch Bundt pan with 2 tbsp. of butter and dust with 1/4 c. of sugar; set aside.
Using an electric mixer, cream together remaining butter and sugar. Continue beating and add eggs one at a time. Once fully incorporated, gradually add vanilla, 2 3/4 c. flour, baking powder and salt to mixture, beating until fully incorporated.
Dredge peaches with remaining 1/4 c. flour and fold into batter. Pour batter into prepared pan and bake for 1 hour and 10 minutes. Remove from oven and allow to cool.
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