In a medium bowl, stir together the sugar, milk, oil, egg and vanilla. In a separate bowl, combine the flour, baking powder and salt. Add the dry ingredients to the wet ingredients and stir until just combined.
Fold the peaches gently into the batter.
Pour the bread batter into a greased 9"x5" bread pan. Bake at 350 degrees for 55-60 minutes. A toothpick inserted in the center of the bread should come out clean. Allow the bread to cool for 10 minutes, then remove the bread to a wire rack to cool completely.
To make the glaze, combine the powdered sugar, melted butter, diced peaches and extract in a small bowl. Mix until it is smooth. Add heavy cream only if needed to get the glaze to a drizzle consistency.
Once the bread is cool, spread the glaze on top of the bread. Slice and serve.
Store the bread in an airtight container in the refrigerator.
**We didn't need any milk or cream to make the glaze spreadable, but it may depend on the juiciness of your peaches. The glaze will be very thick and look like it is not mixing up, but if you keep mixing, it should create a nice creamy peach-ish glaze as shown. If it doesn't, add milk or heavy cream 1 tablespoon at a time. The glaze will soften as it sits too since the sugar pulls out juices from the peaches. Keep this in mind when adding milk and don't add too much!***The calories shown are based on the bread being cut into 10 pieces (and all of the frosting used), with 1 serving being 1 slice of bread. Since different brands of ingredients have different nutritional information, the calories shown are just an estimate.