Wash, peel and pit the peaches (discard the pit) and slice in medium sized pieces.
Add the peach slices to the instant pot.
Also the sugar and vanilla extract to the instant pot, mix well with the peaches so the sugar will dissolve.
Close the instant pot with lid in sealing position and cook in high pressure for 7 minutes.
Once done, press 'keep warm/cancel' button and wait for a natural pressure release.
If you are in a hurry, you may do a careful, controlled gradual manual pressure release after about 12 minutes.
Once the pressure is all released, carefully open the lid of the instant pot.
Stir the contents & mash the peaches using a potato masher depending on the preferred consistency you want for the sauce (you do not need to mash this a lot since we are making peach sauce, unless you want a very smooth consistency for the sauce).
Press saute, simmer the contents for another couple of minutes so the sauce will thicken.
If you simmer for more time, the sauce will further thicken and the consistency can become similar to that of jam. Also, keep in mind that the sauce will natuarally thicken more as it cools down.
Once the sauce is done, it is a good idea to transfer the inner pot to a safe, cool area, to avaoid further thickening of the sauce.
Carefully transfer the prepared peach sauce to bowls so it will cool down more easily.
Once the sauce reaches the room temperature, you can transfer the sauce to clean, dry, air tight glass containers and store this in the refrigerator for about a week!