1 Pet 2:1-12 chiastic structure:
1a) 1 Pet 2:1-3, Therefore, laying aside all malice, all deceit, hypocrisy, envy, and all evil speaking, as newborn babes, desire the pure milk of the word, that you may grow thereby, if indeed you have tasted that the Lord is gracious;
1b.1) 1 Pet 2:4, Coming to Him as to a living stone, rejected indeed by men, but chosen by God and precious;
1b.2) 1 Pet 2:5, You also, as living stones, are being built up a spiritual house, a holy priesthood, to offer up spiritual sacrifices acceptable to God through Jesus Christ;
1c.1) 1 Pet 2:6a, Therefore it is also contained in the Scripture, “Behold, I lay in Zion a chief cornerstone, elect, precious;”
1c.2) 1 Pet 2:6b, “And he who believes on Him will by no means be put to shame;”
central axis) 1 Pet 2:7a, Therefore, to you who believe, He is precious;
2c.1) 1 Pet 2:7b, But to those who are disobedient, “The stone which the builders rejected Has become the chief cornerstone;”
2c.2) 1 Pet 2:8, And “A stone of stumbling and a rock of offense.” They stumble, being disobedient to the word, to which they also were appointed;
2b.1) 1 Pet 2:9a, But you are a chosen generation;
2b.2) 1 Pet 2:9b-10, A royal priesthood, a holy nation, His own special people, that you may proclaim the praises of Him who called you out of darkness into His marvelous light; who once were not a people but are now the people of God, who had not obtained mercy but now have obtained mercy;
2a) 1 Pet 2:11-12, Beloved, I beg you as sojourners and pilgrims, abstain from fleshly lusts which war against the soul, having your conduct honorable among the Gentiles, that when they speak against you as evildoers, they may, by your good works which they observe, glorify God in the day of visitation.
In this chapter, Peter is preaching from the book of Hosea, and preaching on its fulfillment now that Messiah has come. You will need this background information found in Hos 1 through 3. The people Peter is writing to, the people of the Diaspora (1 Pet 1:1), are the people of Israel who were sown like see that Hosea was prophesying about (read the link!). Peter is saying, that those who believe in Messiah Yeshua, become the royal priesthood of Torah and the prophets! New Covenant believers, Peter is preaching to you about your identity in Messiah as a long lost son of the house of Israel!