Bay Laurel Peaches

1 (29 ounce) can peach halves, undrained
1 bay leaf
2 tablespoons butter or margarine
1/2 teaspoon paprika
1/2 teaspoon onion salt
1 teaspoon honey
1/4 cup tarragon vinegar

Drain peaches, reserving liquid. Arrange peach halves, cut side up, in an 8-inch square baking dish. Set peaches aside. Combine reserved peach liquid, bay leaf and butter in a saucepan; bring to a boil and boil 1 minutes. Add paprika and remaining ingredients to mixture in saucepan, stirring well. Pour over peaches. Bake, uncovered, at 325 degrees F for 20 to 25 minutes or until thoroughly heated. Remove bay leaf.