1. Preheat oven to 325°. Place flour, sugar, butter, milk, peach schnapps, eggs, and vanilla (in that order) in 4-qt. bowl of a heavy-duty electric stand mixer. Beat at low speed 1 minute, stopping to scrape down sides. Beat at medium speed 2 minutes. Stir in peaches. Pour into a greased and floured 10-inch (16-cup) tube pan.
2. Bake at 325° for 1 hour and 30 minutes to 1 hour and 35 minutes or until a wooden pick inserted in center comes out clean. Cool in pan on a wire rack 20 minutes. Remove from pan to wire rack; cool completely (about 1 hour).
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