Peel ripe peaches and add then to a small sauce pot. Mash them with your hands and take out the pits.
Add vanilla extract, lime juice, and sugar. Mix well, cover, and simmer over medium-low heat for 7-10 minutes, or until the peaches are completely softened
Pulse mixture in a blender until smooth. Cool completely to room temperature or store in the refrigerator, in an air-tight jar.
Margarita:
Combine margarita mix, tequila, peach schnapps and peach puree in a blender. Pulse a couple of times to blend.
Rub rims of four glasses with a lime and dip each grass rim into the margarita salt.
Fill glasses up with ice about half way and divide margarita mixture among the glasses.
Garnish with some peach slices and enjoy!
Make it Frozen:
Note: it's best to make this frozen peach margarita to a slushy consistency rather that thick. Ice melts quite fast in a frozen margarita so you don't want to dilute the flavor too much.
Combine the peach puree, margarita mix, tequila, and peach schnapps with about 2 cups of ice in a strong blender that can blende ice well. Pulse until everything is blended smooth.
Notes
Make Ahead - you can easily make the peach puree ahead of time! Prepare the peach puree as instructed in the recipe and let it cool to room temperature. Store the cooled peach puree in an air-tight glass jar, in the refrigerator. You can store it for about 2 days before making margaritas.