Place the diced peaches, finely diced red pepper and half of the finely diced habanero pepper, sugar, lime juice, and lime zest together in a large cast iron skillet over medium heat.
Cook, stirring often, until the peaches and liquids have reduced down to a thick jam, about 20-25 minutes. It’s done when a spoon pulled through the jam leaves a path in the skillet.
Pour into a glass jar and allow to cool. Cover with a tight lid and store in the refrigerator for a week.