Maybe you could use peach nectar instead of milk or water. If you reduce it first, the flavor will be more concentrated and you won't have to use as much, but it might change the peach flavor too. Peach kool-aid mix?
Dunno. I'd be interested in a good answer to this one as well.
Edited to add a recipe I just found online:
* 1 [3-ounce / 85-g] cream cheese
* 6 teaspoons [30 mL] pureed in blender fresh peach pieces, until smooth
* 1 1/2 cups [375 mL] icing sugar
very small batch, but maybe good for testing???
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