Preheat the oven to 325 degrees. Prepare a bundt pan by spritzing with nonstick cooking spray and lightly sprinkling with additional flour. Invert the bundt pan and bang the bottom to remove the excess flour.
In a mixing bowl, beat together the sugar and butter until well blended and fluffy. Scrape down the sides.
Add the eggs one at a time, beating well and scraping down the sides between each addition. Beat until completely blended and creamy. Add the vanilla extract and beat just until mixed.
In a small bowl, stir together the peaches with ¼ cup flour. Set aside.
In a larger bowl, whisk together the remaining flour, baking powder, and salt.
Add the flour mixture to the butter mixture and beat on low until well mixed. Scrape down the sides and continue mixing until blended.
Fold the peaches into the batter.
Transfer the batter to the prepared bundt pan, smoothing into an even layer.
Bake the cake for 60 to 70 minutes or until a toothpick inserted in the middle returns clean.
Place the bundt pan on a wire rack and allow to cool for 10 minutes before removing the cake from the bundt pan. Allow it to cool completely on the wire rack.
If desired, sprinkle the cake with powdered sugar prior to slicing and serving.