In a suacepan, bring brown sugar, butter and water to a boil. Reduce heat and simmer for 10 minutes, sirring frequently. Pour into a greased 13x9x2 inch baking dish. Top with peaches. Arrange bread over peaches.
In a bowl, whisk the eggs, milk and vanilla. Slowly pour over the bread. cover and refrigerate for 8 hours or overnight.
Remove from the refrigerator 30 minutes before baking. Sprinkle with cinnamon. Cover and bake at 350 degrees for 20 minutes. Uncover, bake 25-30 minutes longer or until the bread is golden brown. Serve with a spoon.