Creating these delightful Honey Peach Cream Cheese Cupcakes is straightforward. Just follow these steps:

1. Preheat Oven: Preheat your oven to 350°F (175°C) and prepare a cupcake pan with liners.
2. Mix Dry Ingredients: In a medium bowl, combine flour, baking powder, baking soda, and salt. Set aside.
3. Cream Butter and Sugar: In a large bowl, cream the softened butter and granulated sugar together until light and fluffy.
4. Add Eggs: Beat in the eggs—one at a time—ensuring they are fully incorporated.
5. Incorporate Vanilla and Sour Cream: Mix in the vanilla extract and sour cream until smooth.
6. Add Dry Mixtures: Gradually add the dry ingredients to the wet mixture, mixing just until combined.
7. Fold in Peaches and Honey: Gently fold in the chopped peaches and honey until evenly distributed.
8. Fill Cupcake Liners: Fill each cupcake liner about ¾ full with the batter.
9. Bake: Bake in the preheated oven for 20-25 minutes, or until a toothpick inserted into the center comes out clean.
10. Cool: Remove the cupcakes from the oven and allow them to cool in the pan for about 10 minutes. Then, transfer them to a wire rack to cool completely.

For the Cream Cheese Frosting:

11. Beat Cream Cheese and Butter: In a medium bowl, beat together the softened cream cheese and butter until smooth and creamy.
12. Add Powdered Sugar: Gradually add the powdered sugar, mixing until thoroughly combined.
13. Incorporate Vanilla and Milk: Add vanilla extract and milk, mixing until you reach your desired frosting consistency.
14. Frost Cupcakes: Once the cupcakes are completely cool, frost them generously with the cream cheese frosting.