In a mixing bowl, cream butter and sugar. Beat in eggs, one at a time. Beat in milk.
Combine the flour, baking powder and salt; add to creamed mixture. Stir in peaches and blueberries. Pour into a greased and floured 10 inch fluted tube pan. Bake at 350 degrees for 60-70 minutes, or until a toothpick inserted near the center comes out clean. Cool in the pan for 15 minutes; remove to a wire rack to cool completely. Dust with confectioners' sugar, if desired.
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