Preheat the oven to 325 degrees F and prepare a 10-inch tube pan with cake release or shortening and granulated sugar.
Add the flour, sugar, butter, buttermilk, peach schnapps, eggs, and vanilla to the bowl of an electric mixer in the order listed.
Mix on low speed for 1 minute, then stop and scrape the bowl thoroughly.
Continue mixing on medium speed for 2 more minutes until the batter becomes smooth and thick.
Fold the diced fresh peaches into the batter gently by hand using a spatula.
Pour the batter into the prepared tube pan and spread evenly.
Bake for 1 hour 25 minutes to 1 hour 35 minutes, or until a wooden pick comes out clean or with dry crumbs.
Cool the cake in the pan on a wire rack for 20 minutes before inverting onto a serving plate.
Drizzle with cream cheese glaze before serving if desired.
