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PEACH POUND CAKE

1 cup plus 2 tablespoons butter
2-1/4 cups sugar
4 eggs
1 teaspoon vanilla
3 cups all-purpose flour, divided
1 teaspoon baking powder
1/2 teaspoon salt
2 cups chopped fresh peaches

Grease a tube pan with the 2 tablespoons of butter.
Sprinkle pan with 1/4 cup sugar. Cream remaining butter;
gradually add remaining sugar, beating well. Add eggs, one at a time, beating well after each addition. Add vanilla and mix well. Combine 2-3/4 cups flour, baking powder and salt. Gradually add to creamed mixture, beating until well blended. Dredge peaches with remaining 1/4 cup flour. Fold peaches into batter pour batter into prepared pan. Bake at 325*F for 1 hour and 10 minutes. Remove from pan and cool completely.