Preheat your oven to 350°F (175°C) and line a muffin tin with cupcake liners.
In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.
In a large bowl, cream the softened butter and sugar together until light and fluffy.
Add the eggs one at a time, mixing well after each addition, then stir in the vanilla extract.
Gradually add the dry ingredients to the wet mixture, alternating with the sour cream, starting and ending with the flour mixture.
Gently fold in the diced peaches.
Divide the batter evenly among the cupcake liners, filling each about two-thirds full.
Bake for 18-20 minutes or until a toothpick inserted into the center comes out clean.
Allow the cupcakes to cool in the pan for 5 minutes, then transfer them to a wire rack to cool completely.
In a small bowl, beat the softened cream cheese, honey, lemon juice, and cinnamon until smooth and creamy.
Once the cupcakes are completely cool, frost them with the cream cheese mixture.
Serve immediately or refrigerate for up to 2 days.