Mix together flour, ¼ cup sugar, baking powder, salt, and baking powder.
Dice the butter into small pieces. Use a pastry cutter or two knives to cut the butter into the flour mixture, until it's in small but uneven pieces.
In a measuring cup, combine the buttermilk, egg, and vanilla. Pour it into the flour mixture, and use a fork to toss everything around until a rough dough forms.
Use your hands to pat the remaining dry bits onto the dough, then turn out onto a floured surface. Knead (fold the dough in half onto itself) 8-10 times.
Roll out the dough to a 12x10 inch rectangle. Brush half the dough with milk.
Layer ¼ inch slices of peach over the brushed dough. Mix together the sugar and cinnamon, and sprinkle half of it over the peaches.
Fold the empty dough over the peaches. Brush the surface with milk, and sprinkle with remaining cinnamon sugar.
Cut the scone dough into 8 pieces. (I usually prefer cutting scones into triangles for scones, but the dough slips a bit. Squares bake better here.) Place on a parchment-lined baking sheet. Refrigerate for 20 minutes.
After the sconess chill, Bake at 400F for 12-15 minutes. They'll brown a little on top, and a toothpick inserted into the scone dough (but not the peach) should come out clean.
Eat warm. Store at room temperature. These scones are best eaten the same day; the peaches will begin to make them soggy over time.
Notes
Use cold butter, which will help the scones hold their shape a little. If using salted butter, cut out the salt. I usually make sour milk in place of buttermilk. Combine 1 teaspoon of vinegar or lemon juice with enough milk to make ⅓ cup. You can also use yogurt thinned with milk. Don't overwork the dough; if you do, the scones will be tough. Don't skip chilling the scones, as this helps the scones rise better. I originally thought these were more biscuit-like; now I disagree, so I've changed the name. Adapted from Joy the Baker. Calorie count calculated in MyNetDiary and is an estimate only.