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Preheat the oven to 350°F. Butter a 12-inch cast iron skillet. Dust the skillet with 1 tbsp. of granulated sugar and set aside.
In a blender, add all remaining ingredients except peaches and blend until combined, scraping down the sides of the blender if needed.
Pour half of the batter into the prepared skillet.
Arrange the sliced peaches in the pan and add remaining batter, pouring around the peaches so they are still exposed on the top of the batter.
Place in the center of the oven and bake until puffed and golden brown, about 60-70 minutes.