Combine peaches and water; cook gently for 10 minutes. Add sugar and slowly bring to boiling, stirring, until sugar dissolves. Add bag of spices. Remove before putting jam in jars.

Cook rapidly until thick, about 15 minutes, stirring to prevent sticking. Pour boiling hot into hot jars. Adjust caps and process 10 to 15 minutes or put on hot lids and allow to self seal. Makes 4 pints.