Preheat the oven to 400°F; line a small baking sheet with parchment paper.
In a medium bowl, beat the cream cheese, sugar, and vanilla until creamy; set aside.
Unfold the puff pastry sheets onto a lightly floured work surface. Using a 4-inch round cookie cutter (or glass), cut out four circles from each sheet of puff pastry. transfer circles on the baking sheet and top with about 1 tablespoon of the cream cheese mixture and 2-3 slices of peaches.
In a small bowl, whisk together the egg with 1 tablespoon water. Brush the edges of the pastries with the egg wash. Bake the pastries for 15 to 18 minutes or until they’re golden and puffed.Remove pastry from the oven and cool for at least 15 minutes.
To make the glaze, whisk powdered sugar, milk, and vanilla in a small bowl. Drizzle cooled pastries.