Melt butter in a 2-quart baking dish. Combine 3/4 cup sugar, flour, baking powder and salt; add milk, and stir until mixed. Pour batter over butter in baking dish, but do not stir.
Combine peaches and remaining 1/2 cup sugar; spoon over the batter. Do not stir. Bake at 350° for 1 hour.
