Preheat oven to 350°F (175°C). Line muffin tin with parchment liners. Ensure all dairy and eggs are at room temperature.
Macerate peaches by tossing diced peaches with 1 tbsp honey; set aside for 10 minutes to develop syrup.
In a bowl, whisk together flour, baking powder, baking soda, and salt; sift to ensure even distribution.
In a mixer, beat softened butter, sugar, and remaining honey for 4-5 minutes until pale and fluffy.
Add eggs one at a time, mixing 30 seconds after each addition to maintain emulsion.
Alternate adding dry ingredients and buttermilk to the batter in three parts, starting and ending with flour mixture. Mix only until just combined.
Fold macerated peaches and syrup gently into batter with 12-15 folds to maintain airiness.
Scoop batter into liners, filling each about ⅔ full for even baking.
Bake for 20-22 minutes or until a toothpick inserted comes out with a few moist crumbs; internal temperature should reach 205°F.
Cool cupcakes in pan for 10 minutes, then transfer to wire rack to cool completely.
For frosting, beat cream cheese until smooth, add softened butter, then gradually incorporate sifted powdered sugar until firm but spreadable.
Frost cooled cupcakes using a piping bag or spatula.