Preheat oven to 350 degrees and line a baking sheet with parchment paper.
Combine the flour, baking powder, salt and sugar in a large bowl or food processor.
Cut cold butter into flour mixture with pastry blender or pulse in food processor until mixture resembles crumbs.
Add in the egg and milk and stir just until mixed.
Add peaches, and stir until peaches are incorporated and the dough forms a ball.
Place dough onto parchment paper lightly sprinkled with flour and press into a 8 to10 inch circle. (Don't overwork dough.) Then cut into 8 wedges using sharp knife.
Separate the wedges to give the scones room to spread and rise and place on prepared baking sheet.
Bake for 18-20 minutes until the bottoms and edges are beginning to brown and scones are cooked through.
Remove from oven and allow to cool.
Whisk icing ingredients together and drizzle over cooled scones.