Combine flour and baking powder. In mixing bowl, cream butter and granulated sugar until light and fluffy. Beat in egg. Add dry ingredients alternately with milk. Add vanilla, mixing just until combined. Drop batter by spoonsful over peach mixture.

Bake in 375 degree oven for 25 to 35 minutes or until peaches are tender and top is golden brown. Serve warm.

Makes 8 servings.