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Make the cake: Separate egg whites and egg yolks. Combine egg whites and 2 tablespoons water in an electric mixer bowl and beat on high speed for about 1 1/2 minutes or until stiff peaks form. Transfer to a medium bowl.
Add egg yolks and ¼ cup sugar to mixer and beat on high speed for about 1 1/2 minutes. Fold egg whites into egg and sugar mixture. Sift in flour and cornstarch. Gently fold to combine.
Spread mixture evenly in a 10-inch springform pan lined with parchment paper. Bake at 350°F for about 20 minutes or until golden. Remove from oven and cool in the pan.
Meanwhile, make the frosting: Drain syrup from the peaches and reserve. Select the 7 best-looking peach halves and set aside. Chop remaining peaches. Place chopped peaches evenly over the base of the cooled cake.
In a medium glass or ceramic bowl, combine lemon juice, ½ cup sugar, and 6 ounces of the reserved peach syrup. Set aside.
Combine 1/3 cup water and gelatin in a small saucepan and heat over low heat until gelatin dissolves. Whisk warm gelatin mixture into the lemon juice mixture to combine. Add yoghurt to gelatin mixture and mix well.
In a medium mixing bowl, beat heavy cream till stiff peaks form. Fold into the yoghurt mixture. Pour all but about 1½ cups of the mixture on top of the baked cake base. Place cake in the refrigerator for 10 minutes.
Remove cake from the refrigerator. Gently pour a large spoonful of reserved yoghurt mixture in the center of the cake and place one of the peach halves on top. Distribute the remaining yoghurt and peach halves around the cake. Chill cake for several hours or until firm. Release cake from springform pan and serve chilled. Refrigerate any leftovers immediately.
Makes 8 servings.
Variation: Drizzle two tablespoons of orange liquor over the cake base immediately after removing it from oven.
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