In a large saucepan, combine sugar and gelatin. Gradually stir in buttermilk. Cook and stir over low heat until gelatin is well dissolved.
Stir 1 cup of hot mixture slowly into the eggs; return mixture to saucepan. Cook and stir for two minutes. Stir in cream, salt, and vanilla; chill mixture. Add peaches and pour into a four- or five-quart freezer. Freeze according to manufacturer’s directions.