In a heavy-bottomed saucepan, combine the sugar and water and bring to a boil over medium-high heat. Add the fresh and dried blueberries and stir to combine. Turn the heat down to low and simmer for 20 minutes, stirring once or twice. remove from the heat and set aside.
Meanwhile, bring a small pot of water to a rolling boil and lower in the peaches. Cook for several minutes, just until the skins split. Remove and immediately plunge them into an ice-water bath. peel the peaches, remove the pits, and, working over a dish to retain the juices, cut the peaches into small chunks. Fold the peaches and juice into the blueberry mixture. Serve warm with pancakes. Tip: Add a little finely grated lemon zest to your pancake batter. Enjoy!