Add peaches, lemon juice, and honey to the instant pot. Set the valve to sealing. Start the pressure cooker in manual mode for 1 minute at high pressure
Release pressure naturally. Open the lid and switch to saute mode; set to less. Saute for about 15 minutes, stirring occasionally, until most of the liquid has evaporated and the jam has thickened
Turn off the instant pot and stir in the vanilla extract
Optional - use an immersion blender to make smooth (or leave as-is for a more rustic consistency)
Store in jars and refrigerate for up to a week