Add the apple juice, sugar, balsamic vinegar, orange zest, cinnamon, and vanilla bean to a 2-quart saucepan. Bring to a boil, reduce heat, cover, and simmer for 10 minutes.

Peel the peaches and cut into 1/2-inch slices. Add the peaches to the poaching liquid. Bring to a boil, reduce heat, cover, and simmer for 3 minutes. Using a large slotted spoon, transfer the peaches to two separate bowls. Bring the liquid to a boil and reduce by half Scrape the seeds from the vanilla bean into the liquid and discard the pod. Pout half of the poaching liquid over the peaches for the children. Add the Madeira to the remaining poaching liquid. Bring back to a boil and allow to reduce by half, about 10 minutes. Pour the liquid over the peaches for the grown-ups. Break the cinnamon stick into two pieces, adding a piece to each of the bowls. Cool to room temperature. Cover and refrigerate for 8 - 10 hours.