Preheat the oven to 375 F degrees. Line a baking sheet with parchment paper and set aside.
Prepare the peach filling first by adding the peaches and 1/4 cup of sugar to a smaller pot and cook over medium heat for about 3 to 5 minutes just until all the sugar dissolves and the peaches soften a bit. Remove from heat and strain if there is too much liquid.
In the bowl of your mixer add the cream cheese and mix until smooth. Add the sugar, vanilla extract, egg yolk to the cream cheese and continue mixing until well combined and smooth.
Using one puff pastry at a time, place it over a lightly floured surface and roll it out into a 14x12 inch rectangle. Cut slits 1 inch apart from the 2 sides of the puff pastry about 1/3 way in, as seen in the video.
Spoon about half the cream cheese mixture down the center of the pastry and smooth it out. Next add half the peaches over the cream cheese mixture.
Starting at one end, fold the pastry strips over the peach mixture, alternating sides until you completely cover the peach mixture. Repeat with remaining puff pastry and ingredients.
Place the peach strudels onto the prepared baking sheet and brush with the egg wash. Place the baking sheet in the oven and bake for 30 to 35 minutes or until the strudels are golden brown.
Let the peach strudels cool down for about 5 minutes then dust with icing sugar and top with toasted sliced almonds, if preferred.
Cut into slices and serve.