Undrained shear strengths of peat (as well as consolidation characteristics, etc.) is a function of the type of peat that you are encountering, too. There are many types ranging from amorphous peats to woody peats (It has been awhile - there is a book - Muskeg handbook - you might find it referenced in the Canadian Foundation Manual) that actually shows some 20 types of peats.
How high is your embankment? I know that we have left peat in place in a few tailings dams - at the toe, etc. with no problems. Agree that field vane tests are an appropriate initial method to look into. Also, you might consider a trial embankment if this is a major project. Remember, too, a stabilizing berm at the toe will also compress the peat and increase it's shear strength. Use of wick drains with stabilizing berms would surely help to speed up consolidation. Keep in mind though, that as peat consolidates, the coefficient of permeability decreases remarkably. I remember doing tests on Saskatchewan peats/muskegs that showed two to three orders of magnitude decrease in permeability coefficient under some 1500 psf load.
Hope this helps a bit. Best regards.