Place a small plate, such as a saucer in the freezer (this is to help tell if the jam is set) or use a candy thermometer. Have the jars and lids sterilized and ready.

In a large saucepan or a pot, combine the peaches, sugar, 1 cup of bourbon, juice and vanilla bean paste. Stir over medium heat until the sugar is dissolved. Remove the pan from the heat and using a potato masher, crush the peaches until the chunks are squashed but still have some chunky texture.

Return the pan to the heat and bring the mixture to the boil, uncovered, over medium-high heat, stirring occasionally, until the mixture reads 220°F (105°C) on a candy thermometer. Or, place a teaspoonful of the jam onto the plate you put in the freezer. Run your finger through the jam and if your finger clears a path in the jam and it stays parted, the jam is ready. If not, continue to boil and stir the jam occasionally and try again, placing the plate back into the freezer between tries.

Once the jam is the right consistency, add the remaining 1/4 cup of bourbon. Bring the mixture to a boil, reduce the heat to medium and cook, uncovered for 7 minutes to cook off the alcohol taste from the bourbon. Remove a spoonful, allow to cool and test to see that you can still taste the bourbon but the jam has a mellow bourbon flavor. If not, cook a few more minutes before trying the jam again.