Preheat oven to 350 degrees F. Wash peaches (do not skin), dry and cut up into wedges. Melt butter or margarine and pour into a 9 inch square pan. Mix sugar with cut up peaches. Combine dry ingredients and mix in milk, egg and vanilla to form a thick batter. Pour batter over melted butter or margarine. Layer on the peaches, spooning on any juices/sugar. Bake for 45 minutes or until top is golden and set. Cool to warm. Cut into wedges to serve. Serve warm or at room temperature. Garnish, if desired, with whipped cream or ice cream.