In a saucepan, combine the peaches, ½ cup sugar, and water. Mix well. Bring to a boil and simmer for 10 minutes. Remove from the heat.
Butter a 3-quart baking dish thoroughly (on the bottom and along the sides), put the butter in the baking dish (all 8 tablespoons of butter) and place in oven to melt.
In a large mixing bowl, combine flour, baking powder, remaining 1 cup of sugar, and whisk well.
Add milk and mix slowly with the flour mixture to prevent clumping until smooth batter forms.
Pour the batter into the baking dish over melted butter. Do not stir.
Spoon fruit on top, gently pouring in syrup. Batter will rise to top during baking.
Bake for 30 to 45 minutes (or longer, depending on your oven), until golden.
To serve, scoop onto a plate and serve with your choice of whipped cream or vanilla ice cream or chocolate chip ice cream.