Butter the inside of a square, 20cm baking tin.
Soak the saffron in 50ml boiling water for 15 minutes, to draw out the colour.
Cream eat butter and sugar until light add the egg and beat again until evenly mixed through.
Stir in the ground almonds and extract, sift in the flour and baking powder, and fold through alternately with the saffron liquid.
Spread the mixture over the base of the tin, then cut each peach half into quarter segments and press randomly into the mixture.
Sprinkle flaked almonds over the top and bake at 180C (160C fan-assisted)/350F/gas mark 4 for 35-40 minutes.
Leave to cool, then dust with icing sugar and serve.