Preheat oven to 350°F (175°C). Grease and flour a 9x5 inch loaf pan.
In a medium bowl, stir together flour, baking powder, baking soda, salt, cinnamon, and nutmeg.
In a large bowl, cream together butter and sugar until smooth. Beat in eggs one at a time, then stir in the vanilla. Mix in the mashed bananas and milk.
Gradually stir the dry ingredients into the banana mixture until just combined. Fold in the chopped peaches.
Pour batter into the prepared loaf pan. Bake at 350°F (175°C) for 60 minutes, or until a toothpick inserted into the center of the loaf comes out clean.
Let the bread cool in the pan for 10 minutes before transferring to a wire rack to cool completely.
Interesting Facts
Bananas are a great source of potassium, fiber, and vitamin B6.
Peaches are a good source of vitamin C and fiber.
Baking powder helps the bread to rise.
Cinnamon and nutmeg add a special flavor to the bread.