Place peach slices and water in a small saucepan. Bring to boiling; reduce heat. Cover and simmer for 2 minutes. Remove from heat; cool 30 minutes.
Puree with a food mill, baby food grinder, or small food processor. Use within 1 day, or freeze up to 1 month.
Spoon finished food into ice cube trays. Cover with waxed paper and freeze until firm. When ice cubes are frozen, remove cubes from tray and store in a resealable plastic freezer bag or freezer container. Label package with contents and date. Use within 1 month. Before serving, let thaw in the refrigerator overnight.