Bring a large pot of water to a boil. Add peaches and blanch for about 30 seconds. Remove the peaches and peel. Cut peaches into eighths.
Bring 4 cups water to a boil in large pan. Steep tea to your preferred strength. Add the peaches and schnapps to a blender and puree. When tea is steeped, add peach puree and lemon juice. Pour peach tea into large pitcher and chill. To serve, pour over ice cubes in four tall glasses and garnish with lemon slices. Serves 4