Preheat oven to 325 F.
Grease and flour a bundt pan. Set aside.
Cream together butter and sugar.
Mix in eggs one at a time.
Mix in vanilla extract.
Sift together flour, baking powder, and salt.
Add dry ingredients to wet ingredients.
Mix in sour cream.
Fold in lemon zest and peaches.
Spoon batter into prepared pan.
Bake for 1 hour and 8-10 minutes (check it at the 1-hour mark)
Let cake cool in pan until pan is warm to the touch.
Remove cake from pan and let finish cooling on a cooling rack.
Once cooled mix together powdered sugar, vanilla, and milk. (add enough milk it a glaze consistency.
Drizzle glaze on top of cake.
Let glaze harden and serve with vanilla ice cream and sliced peaches.