Peel and core apples and pears, discarding seeds. Cut into small chunks. Place in a medium sauce pot and bring to a boil over medium heat, uncovered. Cook until the apples and pears have softened, about 20 minutes.
Puree fruit until smooth using food mill or blender. Transfer back into the sauce pot and add remaining ingredients from apple cider - vanilla extract. Simmer over medium-low heat, stirring occasionally. Continue to cook for 45 minutes - 1 hour or until the sauce has thickened and become almost like a paste. Remove from heat and cool. Store in sterilized canning jars.