Begin by preheating the oven to 350. Grease your baking pan with non-stick spray.
Prepare your peach cake filling by adding the butter into a warm pan. Once the butter melts and begins to sizzle, add the peaches, sugar, and cinnamon. Cook 3-5 minutes, stirring, until the peaches are tender and the sauce becomes thick. Remove from the heat and set aside.
Make the peach cake batter by adding the milk, butter, sugar, vanilla, baking soda, and baking powder to the bowl. Mix well and then add the flour and oats. Mix until a batter forms.
Pour half of the batter into the greased pan. Add the peaches on top. Then, pour the remaining batter over the top of the peaches. Bake in the oven for 35-40 minutes or until the peach cake is light golden on the outside and completely baked through the center.
While the healthy peach cake bakes, you have the option to make a cream cheese frosting to drizzle on top. Use a whisk or electric hand mixer to mix the powdered sugar, cream cheese, and butter until smooth. Let the peach cake cool before drizzling the icing over the top. Enjoy!