Heat the milk until it’s warm (about 100-110 degrees), and add 1 tsp of sugar along with the packet of yeast.
Give it a good stir and let it sit for about 5-10 minutes to bloom the yeast.
In a stand mixer bowl, add the remaining sugar, melted butter, salt, eggs and flour.
Using the dough hook attachment, mix the ingredients together and add the yeast and milk to the dough once it has bloomed.
Knead the dough for about 6-8 minutes, until it starts forming a ball and pulling away from the sides of the bowl.
If the dough appears very sticky, add about ½ tablespoon of flour to see if it resolves it sticking to the bowl.
Repeat if necessary, but do not add more than 2 Tbsp total.
Once the ball has formed, remove the dough and place in an oiled bowl and cover with a towel and set it in a warm, draft free location to rise for about an hour. It should almost double in size by the end of the hour.
Peel and dice the peaches into small pieces and place them in a medium sized bowl.
Add the brown sugar, cinnamon and nutmeg and stir to coat the peaches.
If your peaches are very ripe and juicy, you may add about a tablespoon of cornstarch to the mixture to prevent the rolls from becoming soggy during baking.
Flour a surface and roll the dough into a rectangle roughly about 12 x 15” in size.
Spread the peach mixture over the dough in an even layer, leaving about ½” border.
Roll up the dough lengthwise and seal in the peaches by pressing the dough back into itself at the end of the rolling process.
Slice into even slices, about 2” in width.
Spray a 9x13 baking pan with high sides with nonstick cooking spray.
Place the cinnamon rolls in the pan, spacing them out to give room to rise again.
Once all the rolls are in the pan, cover with a towel and let them rise for 30-45 minutes, again, they should almost double in size.
Preheat the oven to 350 degrees.
Once the rolls have risen, place them in the oven and bake for 20-25 minutes, until they are golden on top.
Remove and allow to cool completely.
To make the frosting, place the cream cheese and butter in a large bowl and beat with a hand mixer until smooth.
Add in the vanilla and powdered sugar and beat until smooth and creamy.
Use a spatula to spread an even layer of frosting over the top of the cinnamon rolls until completely coated.