Core and pare apples; cut into thin wedges and place in bowl with water to cover.
Add 1 teaspoon lemon juice and set aside.
In small saucepan combine the water and lemon peel; bring to a boil and cook for 5 minutes.
Drain apples and add to saucepan along with honey, vanilla, and remaining teaspoon lemon juice.
Cook until apples are tender, 8 to 10 minutes; remove and discard lemon peel.