Prepare the Cake Pan: Lightly grease and parchment line a 7-inch springform pan.
Make the Cake Batter: Whisk together the flour, baking powder, baking soda, and salt in a bowl. In another bowl, using a stand mixer or hand mixer, beat the butter and sugar on high until light, airy and fluffy for 3 to 4 minutes. Add the sour cream and vanilla extract and mix to combine. Next add the pre-whisked egg and beat to combine. Add the dry ingredients to the butter mixture, a quarter at a time and mix until just combined. Set aside.
Prepare the Cream Cheese Layer: Beat the softened cream cheese, powdered sugar, and vanilla extract until smooth. Set aside.
Prepare the Fruit Filling: In a small bowl, mix the chopped peaches with grated ginger and cornstarch until well coated. Set aside.
Make the Streusel Topping: In a medium bowl, combine the flour, brown sugar, chopped hazelnuts, and ground cinnamon. Stir in the melted butter until the mixture is crumbly. Break up any large clumps of flour. Set aside.
Preheat the Air Fryer: Preheat your air fryer to take function at 330°F (160°C).
Assemble the Cake: Pour half of the cake batter into the prepared cake pan, spreading it evenly. Add the cream cheese layer on top, spreading gently. Spoon half of the peach mixture over the cream cheese layer, spread evenly throughout. Next add half of the streusel topping, spreading it evenly. Top with the remaining cake batter and spread evenly. Add the remaining peaches and sprinkle the remaining streusel topping over the entire surface.
Air Fry the Cake: Place the cake pan in the preheated air fryer. Cook at 330°F (160°C) for 55-70 minutes. Do not open the air fryer for at least 40 minutes to allow the center to set without being disturbed. At 40 minutes carefully turn the cake. Continue to bake for another 15-30 minutes or until a toothpick comes out clean (a few crumbs are ok, but not wet batter), the cake is done.
Allow the cake to cool in the pan for 10 minutes, then transfer it to a wire rack to cool completely.
Prepare the Cream Cheese Drizzle: While the cake is cooling, combine the cream cheese and powdered sugar in the bowl of a hand or stand mixer fitted with the paddle attachment. Mix on low until the sugar and cream cheese are incorporated.
Add the milk and mix to combine. Scrape the sides and bottom of the bowl then mix on medium-high for 1 minute until smooth. Adjust the thickness of the cream cheese drizzle by adding a splash of milk for a thinner consistency or a sprinkle of powdered sugar for a thicker drizzle.
Finish and Serve: Drizzle the cream cheese mixture over the top before serving. Enjoy your delicious air fryer peach coffee cake with a cup of coffee or tea.
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