In a medium saucepan, boil 2 cups of water and steep tea bags for at least 5 minutes. Discard the tea bags.
Peel and pit 2 peaches. Slice the peaches and put them into the tea. Bring the mixture to a boil over medium high heat and boil for 2-3 minutes. Remove from heat and stir in the honey and vanilla extract. Transfer the mixture into the blender and blend until smooth. Peach tea concentrate is ready.
In a large pitcher, mix peach tea concentrate with 8 cups of cold water and serve. If desired, slice the remaining 1 peach and throw into the tea.
Peach tea concentrate can be prepared up to 1 day in advance. Store in the fridge.