Combine first four ingredients in medium bowl. Mix until smooth. Spread evenly in a greased 9x13-inch pan.
Bake at 350°F. for 40 to 50 minutes, or until cake springs back when lightly touched in the center. Cool. Spread with cream cheese frosting.
Combine cream cheese, butter and vanilla in a small mixing bowl. Gradually beat in powdered sugar until smooth. Spread on Peaches 'n Cream Cake.