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In a large sauce pan, heat oil over medium heat and add onion and jalapeno. Cook until soft, about 3-4 minutes.
Add bourbon and cook for one minute to evaporate.
Add peaches and 1 cup of the water and cook for 10 minutes until tender.
Pour the contents of the pan into a food processor and puree until smooth then return to the pan along with all of the other ingredients.
Cook over medium heat until desired thickness. We cooked ours for about five minutes.
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