Preheat your oven to 350°F (175°C).

In a medium bowl, whisk together the flour, baking powder, and salt.

In a large bowl, beat the softened butter and granulated sugar until light and fluffy (about 3-4 minutes).

Mix in the egg and vanilla extract until combined.

Gradually add the dry ingredients to the wet mixture, stirring until just combined.

Gently fold in the diced fresh peaches.

Drop rounded balls of dough onto a lined baking sheet, spacing them 2 inches apart. Bake for 18-20 minutes.

Allow cookies to cool for 5 minutes on the baking sheet, then dust with powdered sugar.