- Cook peaches: In a small saucepan over medium heat, combine chopped peaches, granulated sugar, and lemon juice. Cook for 5-7 minutes, stirring occasionally, until peaches are soft and mixture becomes syrupy. Remove from heat and let cool completely.
- Mix cream cheese base: In a medium bowl, beat softened cream cheese, powdered sugar, vanilla extract, and a pinch of salt until smooth and creamy.
- Combine mixtures: Once peach mixture has cooled, add it to the cream cheese mixture. Stir until well combined, leaving some chunks of peaches for texture.
- Chill: Transfer spread to a serving dish or airtight container. Chill in the refrigerator for at least 1 hour before serving.
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