1. Wash and peel peaches. Place in a 6 to 8 quart dutch oven. Use a potato masher to crush peaches as much as possible. 2. Add water. Bring to a boil. Reduce heat and simmer uncovered for 5 min., stirring occasionally. 3. Use immersion mixer or pour into a blender to blend until smooth. Bring puree to boil and stir in sugar. 4. Continue boiling uncovered at a moderate steady rate for 30 min. Add vanilla. 5. Pour into canning jars. Makes 5 half pints or 2 quarts. Process in a boiling hot water bath for 20 min.