To make the pastry, mix flour, pudding mix and baking powder in mixing bowl. Add butter and egg. Add milk gradually, adding just enough to form a dough. Press dough into a lightly buttered 10 inch pie pan with moistened fingers.
To make the filling, drain peaches, reserving 3 tablespoons of the juice. Spread the peaches in the prepared pie pan. Mix the reserved peach juice with the cream cheese and sugar in a mixing bowl and beat until smooth. Spread over peaches. Sprinkle with cinnamon sugar. Bake pie at 350 for 40 to 50 minutes or until set. Cool on wire rack. Store, covered in refrigerator. Serves 6 to 8