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Step 1
In a medium-size saucepan, add peaches, peppers, vinegar, and pectin. Stir until well mixed.
Step 2
Bring to a rolling boil and add sugar. Bring back to a rolling boil and boil hard for 1 minute, stirring all the while. If there's a bit of foam, spoon it off once the jam is finished boiling.
Step 3
Ladle into jars, and process for 10 minutes in a water bath. If you're at a higher elevation, you'll need 15 minutes.
Step 4
The chopped peppers may settle near the bottom of the jars, so if you want everything to distribute evenly, you'll need to let it cool off a bit and then give each jar a few very gentle turns to help the peppers redistribute.