Combine the peeled sliced peaches with 1 cup of sugar, 1/4 cup of water, and 1/8 tsp cinnamon in a skillet. Bring to a boil and simmer for about 10 minutes (mix well often). Remove the skillet from the heat and pour the peaches in a bowl until ready to be used.
In the skillet, melt the 4 tablespoons of butter on medium heat. While the butter is melting in a bowl combine the self-rising flour, 1 cup of sugar, milk, and 1/4 tsp salt. Mix well then pour into the butter mixture in the skillet. Carefully add peaches and liquid to the top.
Bake for 40 minutes or until golden brown and batter is set. Serve warm and with whipped cream or ice cream if desired!