Preheat the oven to 350°F (175°C). In a mixing bowl, cream together the butter and sugar until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla.

In a separate bowl, combine the flour and baking powder. Gradually add to the creamed mixture until well blended.

Roll the dough into small balls and place them on a baking sheet. Make an indentation in the center of each ball.

Fill each indentation with peach preserves and sprinkle with cinnamon.

Bake for 12-15 minutes or until lightly golden.

In a small bowl, mix powdered sugar and milk until smooth. Drizzle over the cooled cookies.