Cream together margarine, sugar and eggs.
In a separate bowl, mix flour, baking powder, soda, salt and cinnamon.
Add the dry ingredients to the butter-sugar mixture alternating with the peach puree. Mix.
Add vanilla and chopped nuts.
Bake at 350 F for 40-50 minutes.
Cool completely.
Meanwhile, cook sauce ingredients together until thick.
Serve over cake with cream or ice cream.