Preheat oven to 350°F. Line A 12-count muffin pan with cupcake liners.
Add the peaches to a food processor and puree until fully broken down.
Add the puree to a saucepan and bring to boil over medium-high heat and cook (stirring occasionally), until reduced to a ½ cup of syrupy liquid. Set aside to cool while preparing the ingredients for the cake.
Cream the butter and sugar together until light and fluffy.
Add the milk and peach reduction and blend until smooth. Mix in the eggs, peach schnapps, and vanilla.
Add the flour, baking powder and salt. Mix until combined.
Using a large ice cream scoop, fill the cupcake liners 3/4 of the way full. This recipe makes 12 large cupcakes.
Bake for 20-25 minutes or until the tops of the cupcakes spring back when gently touched and a cake tester comes out clean.
Allow to cool in the pan for 5 minutes, then transfer to a rack to cool completely.
To make the frosting:
Add all of the ingredients into a food processor or mixer.
Whip until thick (You’ll know it’s ready to use when you run a spoon through it and it doesn’t collapse into the crevice).
Decorating the cupcakes:
Using a piping bag, swirl the icing onto the cupcakes