In a medium bowl mix together flour, sugar, baking powder,and salt. Mix with wire whisk until well blended. Set aside.
In another medium sized bowl beat two eggs. Add milk, water, and vanilla. Mix well.
Combine dry ingredients and wet ingredients. Mix until smooth.
Place paper towels on a baking sheet to drain cooked funnel cakes on.
In a medium sauce pan, the diameter of the size you want your funnel cakes, place 2-3 inches of oil. Heat oil over medium heat until hot enough to deep fry batter. Test with a tiny drop of water...if it skips across oil it's ready for frying. *Be sure handle of pan is turned inwards towards the stove top.
Place your finger over the end of a funnel. Place a heaping scoop of batter into the funnel. Hold funnel about 5-6 inches above the hot oil. Remove finger holding the batter and begin drizzling into the hot oil, going around in circular motions and back and forth.
Fry on one side until golden brown. Use a fork or chop stick to gently turn the funnel cake over and allow to cook on the other side until it is golden brown.
Remove from oil. Drain on Paper towel.
Place funnel cake on a serving plate.
Sprinkle with cinnamon sugar, then with confectioners sugar.
Place a large scoop of vanilla ice cream in center of funnel cake.
Scoop diced peaches over the top of Ice cream and funnel cake.
Top with a squirt of whipped cream.