Beat flour, baking powder, salt, dry pudding, butter, milk and egg with an electric mixer for 2 minutes and pour into an 8-inch square or pie pan. Drain and save juice from sliced peaches. Arrange peaches over batter.
Mix cream cheese, 1/2 cup sugar and peach juice. Heat until smooth. Spoon over the top, keeping 1 inch from edges. Mix 1 tablespoon sugar and cinnamon and sprinkle over the top. Bake at 350 degrees F for 30 to 35 minutes.
Source: E-Cookbooks.net