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1
Preheat oven to 350u00b0. Line bottoms of two greased 9-in. round baking pans with parchment paper; grease paper. In top of a double boiler or a metal bowl over hot water, melt white chocolate; stir until smooth. Remove from heat.
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2
In a large bowl, cream butter and sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Beat in vanilla. In another bowl, whisk flour, baking powder and salt; add to creamed mixture alternately with milk, beating well after each addition. Stir in melted chocolate.
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3
Transfer batter to prepared pans. Bake 25-30 minutes or until a toothpick inserted in center comes out clean. Cool in pans 10 minutes before removing to wire racks; remove paper. Cool completely.
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4
For frosting, in top of a double boiler or a metal bowl over hot water, melt white chocolate; stir until smooth. Remove from heat; let stand to cool slightly but not set, about 15 minutes. In a large bowl, beat butter and vanilla until blended. Gradually beat in melted chocolate. Gradually add confectioners' sugar, beating until smooth. Refrigerate frosting 45 minutes.
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5
In a small saucepan, bring water and sugar to a boil over medium heat, stirring to dissolve sugar. Cool completely.
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6
Using a long serrated knife, cut each cake horizontally in half. Place one cake layer on a serving plate; brush with some of the syrup. Beat chilled frosting 1-2 minutes or until light and creamy. Spread 1 cup frosting over cake; top with 1 cup peaches. Repeat twice. Top with remaining cake layer. Frost top and sides of cake with remaining frosting.
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7
Arrange remaining peaches over top of cake; brush with preserves. Gently press walnuts into frosting on sides of cake. Store in refrigerator.
