Combine diced peaches, ¼ cup sugar, and lemon juice in a bowl. Let sit for 15–20 minutes until juicy.
Blend the peaches until smooth, leaving a few small chunks if desired. Refrigerate.
In a saucepan, heat the milk, cream, and half the sugar until warm.
In a separate bowl, whisk the egg yolks with the remaining sugar.
Slowly add some warm cream mixture to the eggs while whisking. Return everything to the saucepan.
Cook over medium-low heat, stirring constantly, until the mixture thickens slightly and coats the back of a spoon.
Remove from heat and stir in vanilla extract and salt.
Cool the custard completely and refrigerate for at least 3 hours.
Mix the chilled custard with the peach puree.
Pour into an ice cream maker and churn according to the manufacturer's instructions.
Transfer to a freezer container and freeze for 2–4 hours until firm.
Scoop into bowls or cones and garnish with fresh peach slices.