Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.

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

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

Add the egg and vanilla extract to the creamed mixture, mixing well for about 1-2 minutes.

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

Gently fold in the diced fresh peaches until evenly distributed.

Drop rounded balls of dough onto the lined baking sheet, leaving about 2 inches of space between each.

Bake for 18-20 minutes, or until the edges are lightly golden.

Allow cookies to cool on the baking sheet for 5 minutes, then transfer to a wire rack and dust with powdered sugar before serving.