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 9 slices. Line an ungreased 13 x 9 x 2 dish with slices; set aside. In a large mixing 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.
