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Puree peaches in blender with lemon juice. Boil water and sugar together for 5 minutes. Cool. Stir in juice and peel. Pour into shallow bowl and put in freezer. As it starts to freeze, keep stirring the outside crystals into the center and mix in peel. Do about every half hour -MUST DO!. When real slushy, stop and freeze overnight. To serve, you must scrape very thin layers of the slush off the top.