In a large bowl beat the cream cheese, confectioners' sugar, and vanilla with a hand mixer on medium speed until creamy and no lumps remain.
With a spatula, fold in 2 cups of whipped topping.
Divide the cream cheese mixture into two bowls. Add ¼ cup of the peach jello mix to one of the bowls and gently fold it together. (You will have some jello mix leftover that can be discarded).
To the same bowl the jello mix was added, fold in 1 cup of diced peaches. Reserve the remaining peaches to use for garnish.
Top the crust with an even layer of the peach mixture, followed by the cream cheese mixture, and finally the remaining 1 cup of whipped topping.
Place in the refrigerator to chill for 1 hour, up to overnight.
When ready to serve, top with the reserved diced peaches.