Preheat oven to 350°F. Line muffin tin with paper liners. Set aside.
In a medium bowl, whisk together flour, baking powder, baking soda, salt, and ground freeze-dried peaches.* Set aside.
In the bowl of a stand mixer fitted with a paddle attachment, beat together butter and granulated sugar until smooth. Add eggs one at a time and mix until combined. In a small bowl, mix together cream and peach puree.
Add about 1/3 of flour mixture into the creamed butter. Mix at low-medium speed. Add 1/2 of cream mixture. Continue to mix until almost combined. Add another 1/3 of flour mixture followed by the rest of the cream puree mixture. End with the last 1/3 of flour mixture. Continue to mix until batter is smooth and there are no longer any dry streaks of flour left.
Divide between prepared muffin tins. Bake for 20-22 minutes until cake is done and a toothpick inserted in center of cake comes out clean. Let cool in tin for a couple of minutes before unmolding. Let cool to room temperature on wire rack before frosting.
Peach Cream Cheese Frosting:
In the bowl of a stand mixer fitted with a paddle attachment, cream together butter and cream cheese until smooth. Sift together ground freeze dried peaches and confectioners' sugar. With the mixer on low speed, add sifted ingredients. Once all in, beat at medium speed until frosting is smooth. Transfer frosting to a piping bag fitted with a large star tip. Make little holes in center of cupcakes, if desired, and fill with frosting. Pipe over hole. Decorate with a peach slice.
*Note: Use a spice grinder or food processor to grind freeze-dried peaches into a powder