Preheat oven to 425°F (218°C). Line a 12-cup muffin tin with paper liners or grease generously.
In a medium bowl, whisk together the flour, baking powder, baking soda, cinnamon, and salt until combined.
In a large bowl, cream the softened butter and granulated sugar with an electric mixer on medium speed for 2-3 minutes until pale and fluffy.
Beat in the eggs one at a time until fully incorporated, then mix in the vanilla extract.
Add the sour cream and milk and mix on low speed until just combined (batter may look slightly curdled).
Add the dry ingredients all at once and gently fold with a rubber spatula until no dry flour streaks remain. Do not overmix.
Gently fold in the blueberries and diced peaches with as few strokes as possible to distribute the fruit without crushing it.
Divide the batter evenly among the 12 muffin cups, filling each about 3/4 full. Mix topping sugar and cinnamon, then sprinkle generously over each muffin.
Bake at 425°F for 5 minutes, then reduce oven temperature to 375°F (190°C) without opening the door and continue baking for 14-17 minutes until golden and a toothpick comes out clean.
Let muffins cool in the pan on a wire rack for 5 minutes, then remove from the tin and cool directly on the rack for at least 10 more minutes before serving.