Drain peaches well. Cut into 1 inch cubes. Put 1/4 C. Scalded milk, slightly cooled into a small bowl. Add the 1 tsp sugar and yeast; mix well. Add 2 T flour and mix. Set aside to rise 15-20 minutes.
Cream butter, remaining sugar, salt in large bowl. Add eggs, beating after adding each one. Add 1 cup flour (sifting just before adding it) and beat. Add the yeast mix, remaining milk, remaining flour (sift before adding).
Beat well, form into a ball in the bowl. Sprinkle with flour; let rise 1 hour. (TIP - turn cold oven to 400 degrees for 1 minute, turn off and leave towel covered dough bowl in oven with oven light turned on.)
Turn risen dough out of bowl on a floured surface, let rest 15 minutes. Make small balls about 1.5 inches and let rest 15 minutes. Roll each out wtih rolling pin. Place peach cube in center of each dough round, pinch tightly to seal. Bring large pot of salted water to boil; place a few dumplings in a metal basket. Lower into boiling water' boil 5 minutes. Remove. Serve with melted butter, sprinkle with cinnamon and sugar mixture.
To reheat, place dumplings in cloth in a colander OVER boiling water in a covered pan.
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