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Preheat the oven to 350°F.
While the oven is preheating, place 1 tablespoon of the sugar in a small bowl and set aside.
Place the remaining 1 cup of sugar in a medium bowl. Add the butter and use a pastry blender or two forks to cut the butter into the sugar until it resembles coarse crumbs.
Add the flour, baking powder, and salt and stir to combine.
Add the milk and stir just until a soft dough forms.
Meanwhile, peel, halve, and pit the peaches. Using a spoon, scoop the center of each peach half to remove the pit.
Place the peach halves in a 9x13-inch baking dish. Sprinkle with the ½ cup sugar, lemon juice, cinnamon, and vanilla. Toss to coat.
Spoon the batter over the peach mixture, spreading it to the edges of the dish.
Sprinkle the reserved 1 tablespoon of sugar over the top.
Bake for 30 to 35 minutes, or until the crust is golden brown.