Preheat oven to 350°F (175°C).

In a large bowl, combine flour, baking powder, salt, vanilla pudding mix, softened butter, egg, half of the cream cheese (8 oz), and milk.

Beat the mixture for 2 minutes until well combined.

Grease a baking dish (e.g., 9x13 inch).

Pour the batter into the prepared baking dish.

Arrange sliced peaches in a single layer on top of the batter.

In a separate bowl, combine the remaining cream cheese, sugar, and peach juice.

Beat the cream cheese mixture for 2 minutes until smooth and creamy.

Spoon the cream cheese mixture evenly over the peaches, leaving about 1 inch of batter exposed around the edge.

In a small bowl, mix together the remaining sugar and cinnamon.

Sprinkle the cinnamon-sugar mixture evenly over the cream cheese topping.

Bake in the preheated oven for 30-35 minutes, or until the top is lightly golden brown.

Let cool slightly before serving.

Serve warm with whipped cream or ice cream, if desired.