Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a medium bowl, whisk together all-purpose flour, baking powder, and salt.

In a large bowl, beat softened unsalted butter and granulated sugar together until light and fluffy.

Blend in the egg and vanilla extract until fully incorporated.

Gradually add the dry ingredients to the wet mixture, stirring gently until just combined.

Carefully fold in the diced peaches until evenly distributed.

Scoop rounded balls of dough onto the baking sheets, spacing about 2 inches apart.

Bake for 18-20 minutes until lightly golden around the edges.

Allow cookies to cool on the baking sheet for 5 minutes before transferring to a wire rack.

Dust cooled cookies with powdered sugar before serving.