Preheat oven to 350 degrees F (175 degrees C). Grease a 10×10-inch baking dish.
Stir together peaches with cinnamon and 1 1/2 cups sugar. Set aside.
In a medium bowl, cream together shortening and 1 cup sugar. Mix in flour, baking powder and salt alternately with milk. Pour into prepared pan. Top with peach mixture. Drop butter in boiling water and pour all over peaches.
Bake in preheated oven 40 to 45 minutes, until golden brown.
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