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Preheat oven to 350°F (175°C). Grease an 8x8 baking pan and line with parchment paper. Set aside.
In a small saucepan, melt butter over medium-high heat, stirring constantly. Continue cooking until it turns golden brown and smells nutty. Immediately transfer to a heat-safe bowl to cool.
In a small bowl, combine streusel ingredients and mix until coarse crumbs form. Set aside.
In a medium bowl, whisk together: all-purpose flour, baking powder, baking soda, salt. Set aside.
In a large bowl, whisk together the cooled brown butter and brown sugar until combined. Add the egg, sour cream, milk, and vanilla extract and mix until smooth.
Gently fold the dry ingredients into the wet mixture until just combined. Do not overmix. Fold in the diced peaches.
Pour batter into prepared pan and evenly sprinkle streusel on top.
Bake for 38–42 minutes, or until a toothpick inserted in the center comes out clean.
Melt 2 tbsp butter and mix with 1 tbsp honey. Drizzle over warm coffee cake before serving.
Enjoy warm or at room temperature.