Add the sliced peaches, chopped peppers, lemon juice and 7 ½ cups of sugar to a large pot.
Turn the stove on a medium low heat.
Stir the fruit and sugar. Stay close to the pot and keep stirring from the bottom of the pot.
As the sugar starts to melt stir it into the fruit to keep the sugar from scorching on the bottom of the pot.
Once the sugar has melted turn the heat up to medium.
Continue stirring periodically.
As the mixture starts to boil throw a tablespoon of butter or margarine in the pot to cut down on foam.
Bring to a roiling boil.
Cook until the peaches become soft, about 20 minutes.
Once the peaches are soft add the pouch of liquid pectin to the pot, stirring. Bring the mixture to a full rolling boil.
Start your timer for 1 minute and if the jam foams up and looks like it might over flow carefully stir it down.
Keep the jam boiling for one full minute. Once your timer goes off remove the pot from the hot burner.
Skim any foam from the top and fill your jars leaving a ¼ inch head space.
Once you have filled all your jars you will need to process this jam in a hot water bath. Please follow the direction on the box of liquid pectin for the processing time for your part of the country.