Preheat oven to 350°F (175°C). Line a 12-cup muffin tin with cupcake liners.
In a medium bowl, whisk together flour, baking powder, baking soda, and salt.
In a large bowl, beat butter, honey, and sugar until light and fluffy.
Add eggs one at a time, beating well after each addition. Stir in vanilla extract.
Alternate adding the dry ingredients and buttermilk to the wet mixture, beginning and ending with dry ingredients. Mix until just combined.
Fold in diced peaches gently.
Divide batter evenly among liners, filling each about ⅔ full.
Bake for 18–22 minutes, or until a toothpick inserted comes out clean. Let cool in pan 5 minutes, then transfer to a wire rack.
For frosting, beat cream cheese and butter until smooth.
Gradually add powdered sugar and beat until fluffy. Mix in vanilla and honey if using.
Frost cooled cupcakes and garnish with peach slices and a honey drizzle.