Saute onions in olive oil until they start to soften. Add garlic and stir until fragrant. Mix in peaches, nutmeg and bourbon. Bring to a simmer.
Mix in tomato paste, vinegar, Worcestershire sauce, mustard, brown sugar, black pepper, salt, and 2-4 TBS water. Bring back to a simmer and cook covered for 20-30 minutes, stirring frequently.
Add hot sauce and enough remaining water so that you can blend the sauce. Blend with an immersion blender until smooth. Let sit overnight for flavors to develop.
Recipe by Alison's Allspice at https://www.alisonsallspice.com/peach-bourbon-barbecue-sauce/