In a large bowl, whisk together the olive oil, hot honey, Dijon mustard, peach preserves, lemon juice, garlic, smoked paprika, salt, and pepper.
Add the chicken and toss until evenly coated. Cover and refrigerate for at least 30 minutes or up to 8 hours.
Thread the marinated chicken, peaches, and red onion onto skewers, alternating the ingredients.
Preheat a grill to medium-high heat and lightly oil the grates.
Grill the kabobs for 12–15 minutes, turning every few minutes, until the chicken reaches an internal temperature of 165°F.
Brush with additional hot honey during the last 2–3 minutes of grilling.
Remove from the grill and garnish with fresh basil and crumbled feta, if desired. Serve immediately.