In a medium saucepan over medium heat, combine 1 ½ cups cubed peaches, ¾ cup granulated sugar, and 1 tablespoon lemon juice. Cook for 12–15 minutes, mashing occasionally, until the mixture becomes juicy and thick. In a small bowl, mix 2 teaspoons cornstarch with 1 tablespoon water, then stir it into the jam. Cook for an additional 2 minutes until thickened, and transfer to a bowl to cool completely.
In a small saucepan, whisk together ¼ cup water and ¼ cup flour over medium heat. Continue to cook while whisking constantly for about 4–5 minutes, until it turns thick and paste-like. Once thickened, transfer the mixture to a bowl and allow it to cool while you prepare the remaining ingredients for the Peach Cobbler Cinnamon Rolls.
In the bowl of a stand mixer, combine 3 ½ cups all-purpose flour, ¼ cup granulated sugar, 2 teaspoons instant yeast, and ½ teaspoon fine sea salt. Add the cooled paste mixture, ¾ cup milk, 1 large egg, and 1 teaspoon vanilla extract. Mix on low speed until a shaggy dough starts to form, ensuring all ingredients are well incorporated for the best texture.
Gradually add ½ cup softened butter, one tablespoon at a time, mixing until fully incorporated. Then, knead the dough on medium speed for about 10–11 minutes until it becomes smooth and elastic. Shape the dough into a ball, place it in a greased bowl, cover with a clean kitchen towel, and let it rise in a warm place for about 1 hour, or until doubled in size.
In a mixing bowl, combine ½ cup melted butter, ½ cup all-purpose flour, ½ cup brown sugar, and 1 tablespoon ground cinnamon. Mix until the mixture is crumbly, resembling a streusel topping. Chill this mixture in the refrigerator until you are ready to use it.
Once the dough has risen, turn it out onto a floured surface and roll it into an 18×15-inch rectangle. Spread the chilled brown sugar filling evenly over the surface, then layer the cooled peach jam on top. Add thinly sliced peaches, distributing them evenly across the jam. Cut the dough into 12 strips, about 1½ inches wide, and roll each strip tightly into swirls.
Place the rolled cinnamon rolls in a parchment-lined 9×13-inch metal baking dish. Cover them with a kitchen towel and let them rise for another hour, or until they have doubled in size.
Preheat your oven to 325°F (162°C). Once the rolls have finished rising, sprinkle the crumble topping generously over the top. Bake in the preheated oven for about 30–35 minutes until the rolls are golden brown on top.
In a mixing bowl, beat together 2 oz of softened cream cheese and ½ cup softened butter until smooth and creamy. Gradually add in ½ cup powdered sugar while mixing, and then drizzle in 2 tablespoons of heavy cream to achieve your desired consistency.
Once the rolls have cooled slightly, drizzle the delicious cream cheese frosting generously over them. Gather your loved ones and enjoy these delightful Peach Cobbler Cinnamon Rolls fresh from the oven!