This light and lovely dessert is absolutely heavenly! Marge Hubrich of St. Cloud, Minnesota suggests, "Try this with fresh strawberries, raspberries or blueberries, too, using the corresponding flavor of gelatin. It's delicious with any of them."
In a small saucepan, combine sugar and cornstarch. Gradually whisk in water and corn syrup until smooth. Bring to a boil. Cook and stir for 1-2 minutes or until thickened. Remove from the heat; stir in gelatin until dissolved. Cool to room temperature, stirring several times.
Cut angel food cake into nine slices. Line an ungreased 13-in. x 9-in. dish with the slices; set aside. In a large bowl, beat cream cheese and confectioners' sugar until smooth. Gradually beat in milk.
Set aside 1/3 cup whipped topping for garnish. Fold remaining whipped topping into cream cheese mixture; spread over cake. Top with peaches. Pour gelatin mixture over peaches.
Cover and refrigerate for at least 4 hours. Cut into squares. Top each piece with about 1 teaspoon of reserved whipped topping. Refrigerate leftovers.