In a large mixing cup, bowl, or blender, puree the diced peaches with the sugar until smooth. Set aside.
In a mixing bowl, combine the flour, baking powder and salt. Gently stir in the peach puree, eggs, melted butter, vanilla and buttermilk. Stir until just combined, lumps are ok.
Let the batter sit for 5 to 10 minutes.
Cook the pancakes over a hot griddle or skillet. We used a quarter-cup to measure out equally sized pancakes. When the tops are bubbly and the bottom is golden brown, flip the pancakes and cook a couple of minutes until the other side is brown.
For the Topping
In a large skillet, melt a stick of butter over medium heat. Add the peaches, brown sugar and salt. Cook and stir until the sugar is dissolved and the peaches are tender but not mushy.