Prepare your jars: Wash canning jars, lids, and bands in hot, soapy water and rinse thoroughly. Keep jars warm (in hot water or low oven around 200°F) to prevent breaking. Set lids aside.
Prepare the peaches: Score a small 'X' at the bottom of each peach, blanch in boiling water for 30-60 seconds, then dip in an ice bath. Skins should slip off. Remove pits and dice peaches into small, uniform pieces (¼ to ½ inch), aiming for about 4 cups total.
Prepare the jalapenos: Finely dice the peppers, wearing gloves if sensitive. Remove seeds and white membrane for less heat, leave some/all for more heat.
Combine fruit mixture: In a large, heavy-bottomed pot or Dutch oven, combine diced peaches, diced jalapenos, fresh lemon juice, and water. Stir everything together.
Prepare pectin mixture: In a separate small bowl, whisk together the powdered pectin with about ¼ cup of the measured sugar.
Add pectin: Add the pectin-sugar mixture to the fruit mixture in the pot. Stir well to combine.
Bring to boil: Place the pot over high heat and bring the mixture to a rolling boil, stirring constantly.
Add remaining sugar: Once at a rolling boil, stir in the remaining granulated sugar all at once. Keep stirring until all sugar is dissolved.
Hard boil: Bring the mixture back to a strong, rolling boil. Boil hard for 1 minute, stirring constantly. Set a timer.
Remove from heat and skim: After the 1-minute hard boil, remove the pot from the heat. Skim off any foam from the surface using a metal spoon.
Fill jars: Carefully ladle the hot jam into your prepared, warm jars, leaving about ¼ inch of headspace.
Wipe rims and seal: Wipe the rims of the jars clean with a damp paper towel. Center flat metal lids on the jars and screw on the bands finger-tight.
Process jars: Process the filled jars in a boiling water canner. Place jars on a rack, ensuring they are fully submerged by at least 1 inch. Bring water to a full rolling boil, cover, and process for 10 minutes (adjust for altitude > 1,000 feet).
Cool jars: Turn off heat, carefully remove canner lid, and let jars sit in hot water for 5 minutes. Carefully lift out jars using a jar lifter and place them on a towel-lined surface, spaced slightly apart. Let cool completely undisturbed for 12-24 hours.
Check seals: Once cool, check seals. Lids should be concave and not pop up when pressed. If a lid doesn't seal, refrigerate that jar and use first.