Preheat the oven to 350 degrees. Spray a 2 quart baking dish or 9x13 baking pan with cooking spray.
In a medium saucepan over medium low heat, combine the peaches and sugar. Cook and stir gently until gently boiling.
In a small bowl, combine the cornstarch and water, mixing well. Drizzle this into the peaches and mix. Stir until thickened.
Add the butter, cinnamon and vanilla. Mix well. Remove from heat and pour into the prepared pan.
In a medium bowl, whisk together the flour, sugar, baking powder and salt.
Cut in the cold butter using a pastry blender.
Add in the milk and mix just until combined. Do not over mix!
Drop the batter onto the peaches by spoonfuls.
Sprinkle the 1/4 cup sugar overtop the batter.
Use a spray bottle to spray water on the sugar or drizzle the hot water all over the sugar.
Bake for 40-45 minutes or until the cobbler batter is baked through and the peaches are bubbling. The cobbler will be very lightly browned.
Serve warm with ice cream.
Store covered in the refrigerator.
The calories shown are based on the recipe serving 10, with 1 serving being 1/10 of the recipe. Since different brands of ingredients have different nutritional information, the calories shown are just an estimate.