Preheat oven to 180C. Stir warm milk and butter in a saucepan over medium heat until almost boiling, transfer to a bowl with breadcrumbs, 25gm sugar, vanilla and lemon rind and set aside to soak (10 minutes).
Whisk egg yolks into breadcrumb mixture, pour into a buttered 1.5-litre baking dish, bake until just set (20-25 minutes), spread with jam and scatter with peach wedges.
Whisk eggwhite and a pinch of salt in an electric mixer until soft peaks form (2-3 minutes), then, whisking continuously, gradually add remaining sugar and whisk until stiff and glossy (2-3 minutes). Spoon in peaks over peaches and bake until golden brown (12-15 minutes). Serve hot.
Note Vanilla bean paste is available from select delicatessens and supermarkets.
This recipe is from the February 2012 issue of Australian Gourmet Traveller.