Combine peaches and 1/3 cup sugar; stir well.
Let stand 15 minutes.
Beat egg substitute at medium speed of an electric mixer until foamy.
Combine 1/2 cup sugar, flour, and salt in a small bowl; stir well.
Gradually add flour mixture to egg substitute, beating well.
Add milk, and mix well.
Cook in a large saucepan over medium-low heat, stirring constantly, until mixture is slightly thickened.
Remove from heat, and let cool.
Add peach mixture and vanilla; stir well.
Cover mixture and chill thoroughly.
Pour mixture into freezer can of a 5-quart hand-turned or electric freezer.
Freeze according to manu-facturer's instructions.
Let ripen 1 hour, if desired.
Scoop ice milk into individual dessert bowls.