1 cup butter plus 2 tablespoons butter
2 1/4 cups sugar, divided
1 teaspoon vanilla
3 cups all-purpose flour, divided
1 teaspoon baking powder
1/2 teaspoon salt
2 cups chopped, fresh peaches
Grease a 10-inch tube pan with 2 tablespoons butter.
Sprinkle pan with 1/4 cup sugar.
Cream remaining butter; gradually add remaining sugar, beating well.
Add eggs, one at a time, beating well after each addition.
Add vanilla and mix well.
Combine 2 3/4 cups flour, baking powder, and salt; gradually add to creamed mixture, beating until well blended.
Dredge peaches with remaining 1/4 cup flour.
Fold peaches into batter.
Pour batter into prepared pan.
Bake at 325º for 1 hour 10 minutes.
Remove from pan and cool completely.