In a small pot, combine the sugar and 1 cup of water and diced peaches. Bring to a simmer over medium heat, and simmer for 6 minutes.
Remove from heat and strain peaches and place in a blender, blend until smooth to create peach purée. You may thin it out with some of the simple syrup if you’d like.
Reserve 1/2 cup of the simple syrup created after cooking the peaches. Let cool completely.
Make the lemonade by combining the lemon juice, water and 1/2 cup peach simple syrup in a large pitcher.
In a cocktail shaker, add 1 tablespoon of peach purée, 1 cup peach lemonade and 1 oz vodka. Shake to combine.