Place the diced peaches, red pepper, and half of the habanero pepper, sugar, lime juice, and lime zest 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 the mixture into a glass jar and allow it to cool. Cover with an airtight lid and store in the refrigerator for up to a week.