For compote: Bring honey, lemon peel, lemonjuice, and 1/2 cup water to a boil in a small heavy saucepan. Add cherries and simmerbriskly, stirring occasionally, until sauce is syrupy, about 15 minutes. Transfer cherry compote to a medium bowl and chill. DO AHEAD: Compote can be made 1 day ahead. Cover and chill. Remove lemon peel just before serving.

For pancake: Preheat oven to 425°F. Melt 2 tablespoons butter in a small saucepan; scrape into a blender. Add eggs, flour, milk, 1 tablespoon sugar,vanilla extract, and salt. Blend batter until smooth; set aside in blender.

Heat a 12 cast-iron skillet over mediumheat. Add remaining 2 tablespoons butter andremaining 2 tablespoons sugar and cook, stirringconstantly, until sugar starts to caramelize,about 2 minutes. Add peaches to skillet;increase heat to medium-high and cook,stirring frequently, until softened, about 2 minutes. Briefly reblend reserved pancakebatter. Pour evenly over peaches andtransfer to oven.

Bake pancake until puffed and goldenbrown all over, 17-20 minutes (it will deflateas soon as its removed from the oven).Dust pancake with powdered sugar andserve immediately, passing cherry compotealongside.