1. Place a medium pot over medium heat. Add the vinegar, garlic, ginger root, bay leaf, peppercorns, ground mustard seed, brown sugar, cayenne pepper, and salt, and stir constantly for 2 to 3 minutes. Add the peaches and mix thoroughly. Cover and simmer for 30 minutes, until the peaches are soft and mashed and the chutney is thick. Stir occasionally to prevent the ingredients from sticking to the bottom of the pot. Remove from the heat and allow to cool.
2. Serve the chutney in a small bowl. To store, transfer it to a 16-ounce airtight jar and refrigerate for up to a week.