Preheat oven to 325°F (165°C). Grease a 9x5-inch loaf pan and line bottom with parchment paper.

In a medium bowl, whisk together flour, baking powder, baking soda, salt, cinnamon, and nutmeg.

In a large bowl, cream softened butter with granulated and brown sugars until light and fluffy, about 4 minutes.

Add eggs one at a time, beating well after each addition. Mix in vanilla extract.

Alternately add dry ingredients and milk to butter mixture in three additions, beginning and ending with flour mixture. Mix on low speed just until combined.

Toss diced peaches with 2 tablespoons flour until coated. Gently fold floured peaches into batter using a rubber spatula.

Pour batter into prepared pan, smooth top, and tap pan on counter to release air bubbles.

Bake 65-75 minutes until a toothpick inserted in center comes out with a few moist crumbs. Top should be golden brown.

While cake bakes, prepare glaze by combining peach preserves, butter, water, and lemon juice in a small saucepan over medium heat. Stir until smooth and glossy.

When cake is done, immediately poke holes all over surface with a skewer. Brush half the warm glaze over hot cake.

Cool cake in pan for 20 minutes, then remove to wire rack. Brush remaining glaze over top and sides while still warm.

Allow cake to cool completely before slicing. Glaze will set as it cools, creating a glossy finish.