Preheat oven to 180°C. Grease a 6 cup capacity (20cm x 10cm x 7cm deep base measurement) loaf pan and line with baking paper, 5cm above line of pan. Using an electric mixer, beat butter, sugar and vanilla until pale and creamy. Add egg, 1 at a time, beating well after each addition.

Using a large metal spoon, gently fold in sour cream, peaches and coconut. Sift flours over batter and gently fold until combined.

Spoon batter into prepared loaf pan. Smooth top and sprinkle with chopped nuts, pressing gently into batter. Bake for 1 hour or until a skewer inserted into the centre comes out clean. Stand for 10 minutes before turning out onto a wire rack to cool.