Heat oven to 425°F. Generously spray 15x10x1-inch baking pan with nonstick cooking spray. In small bowl, beat cream cheese and powdered sugar until well blended. Spread mixture on one side of each slice of bread. On 6 of the bread slices, arrange peach slices evenly over cream cheese mixture. Top with remaining bread slices, cream cheese side down; press down firmly.
In shallow bowl, combine eggs, milk and vanilla; beat well. Dip each sandwich in egg mixture, soaking both sides; place in sprayed pan. Pour any remaining egg mixture over filled sandwiches.**
Bake at 425°F. for 10 minutes. Turn French toast; bake an additional 10 minutes or until both sides are browned and crisp. Let stand 5 minutes before serving. Serve with syrup. Store any remaining French toast in refrigerator.