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Preheat oven to 325 degrees F. Prepare a loaf pan (9 by 5 inches) or, as I did, use two small loaf pans by greasing them generously and dusting them with flour. Alternatively, line pan with parchment leaving some overhang on the long sides. The overhang will serve as handles to help you remove the baked cake from the pan. Set aside.
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Dice peaches into 1/3 inch pieces. Use paper towels to pat the diced peaches dry and set aside.
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Use your food processor (or blender) to puree the two remaining peaches and the lemon juice. You will need 1 cup of puree. Measure it out and put it into a large bowl. Add the melted butter, eggs and egg yolk and vanilla and whisk until the ingredients are combined. Set aside.
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Scrape down the sides of your food processor bowl (or blender). Use the puree remaining in the bowl for your icing. Add 1 C. unsifted confectioners' sugar to the peach puree and blend on high until you have a thick but still pourable icing. You will drizzle this icing over your baked poundcake so you want it to be somewhat liquid. If your icing is too thick, add a bit of water. If your icing is too thin, add a bit more confectioners' sugar. Cover and set aside until your cake is baked.
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Add flour, granulated sugar, baking powder and salt to a large bowl or to the bowl of your KitchenAid Mixer. Whisk to combine. Add the peach puree mixture to the flour mixture. Use a whisk or the whisk attachment to completely mix the ingredients together. Fold in the diced peaches.
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Pour the batter into your prepared loaf pan or pans. Smooth the top. Bake at 325 degrees F. for 75 to 80 minutes. You want your cake to be golden brown on the top and you want to be able to stick a skewer into the center of the cake and have it come out clean.
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Remove cake from oven and cool on a wire rack for about 10 minutes. Run a knife around the edges of the pan to be sure the cake releases neatly from the loaf pan. Or, if you used parchment, use the parchment handles to lift the cake out of the pan.
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When cake has cooled a bit but is still warm, stir the icing and drizzle it on top of the cake. (This is a pretty icing. The processed peach skins give little pops of red color to the icing and makes for a pretty presentation.)
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Cook's Note: Wrapped tightly in plastic wrap, this sweet little cake will stay moist and delicious for several days. Use the most colorful peaches you can find for this recipe.