Bring a medium pot of water to a simmer.
Drop in peaches for 15-30 seconds then remove from simmering water and place in cold water.
Remove skins once cool enough to handle.
Chop peaches, remove stones, and place in a medium saucepan. Add remaining ingredients and bring to a hard boil.
Cook for 5-8 minutes or until peaches are cooked.
Spread cooked peach mixture on a rimmed backing sheet for rapid cooling. Discard thyme sprig.
Store cooled peach compote in a sealable container in the refrigerator until ready to use.