Fuzzy Navel Cake

1 (15 ounce) can sliced peaches, with juice
1  cup white sugar
1/2 cup peach schnapps
1/4 cup orange juice
1 (18.25  ounce) package yellow cake mix
1 (3 ounce) package instant vanilla pudding  mix
4 eggs
2/3 cup vegetable oil
1 1/2 cups confectioners' sugar
1/4  cup melted margarine

Preheat oven to 350 degrees. Grease and flour a 10  inch Bundt pan. In a
blender, puree peaches with juice, Schnapps, white sugar  and orange juice
until smooth. In a medium bowl, mix together the cake mix,  pudding mix,
eggs, oil and 1 1/2 cups of the peach mixture. Pour batter into  prepared
pan. Bake in the preheated oven for 50 minutes, or until a  toothpick
inserted into the center of the cake comes out clean. Frost cake  while
still hot.

To make the frosting: Mix together the confectioners'  sugar, margarine and
remaining 1/4 cup of the peach mixture. Pour over hot  cake.

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