Preheat the oven to 325°F (165°C) and grease the Bundt pan.

In a large mixing bowl, combine flour, baking powder, and salt.

In a separate bowl, cream the butter and granulated sugar using an electric mixer until light and fluffy.

Beat in the eggs one at a time, then add vanilla extract.

Gradually add the dry ingredients to the creamed mixture alternately with milk, beginning and ending with flour.

In a medium saucepan, combine peaches, brown sugar, cinnamon, nutmeg, and lemon juice, and cook over medium heat until the mixture thickens.

Pour half the cake batter into the prepared Bundt pan, then layer with half the peach mixture.

Add the remaining batter on top, followed by the rest of the peach mixture.

Bake for 1 hour 15 minutes or until a toothpick inserted in the center comes out clean.

Allow the cake to rest for 10 minutes before inverting onto a cooling rack to cool completely.