In a large stainless steel pot, combine peach quarters and water. Bring to boil over medium-high heat. Reduce heat and boil gently, stirring occasionally until the peaches are soft (approx. 15 minutes).
Working in two separate batches, transfer peach mixture to a food processor or blender and puree just until a smooth texture is achieved — do not liquefy. This should yield 6 – 8 cups of peach puree.
Return the puree to the pot and stir in lemon juice, sugar, honey, salt, vanilla bean scrapings, and scraped vanilla pods. Bring to a boil over medium-high heat, stirring frequently. Reduce heat to medium and simmer, stirring frequently to prevent sticking and burning until the mixture thickens and will hold its shape on a spoon, roughly 20 minutes.
When thickened, remove vanilla pods, then ladle the hot butter into jars, leaving 1/4 inch headspace. Remove air bubbles, wipe rim, and tighten lids. Completely submerge jars in water bath filled with warm water. Bring to a boil and process for 10 – 15 minutes. Remove jars, cool and store. Enjoy.