Drain peaches, reserving syrup. Cut peaches into small pieces and set aside. In a heavy medium saucepan, combine peach syrup with remaining ingredients. Boil rapidly uncovered 30 minutes, stirring occasionally. Watch carefully to prevent burning. Stir in peaches. Continue to boil until mixture is thickened, about 30 minutes more. Pour into jars and refrigerate overnight to blend flavors. May be stored in refrigerator for several weeks or frozen. To serve, thaw overnight in refrigerator. Makes 5 cups.