Preheat oven to 350 degrees F.

In mixing bowl, beat together first 6 ingredients, eggs through salt.

In another bowl, combine milk & water, then beat it into the egg mixture.

In greased 1 1/2-quart casserole, layer bread, milk mixture & peaches until all ingredients are used.

Set casserole in pan of hot water & bake 30-40 minutes or until a knife inserted in center comes out clean.

Remove from oven, cool & serve.

Refrigerate leftovers.