Cut off the top and bottom of each lemon, just enough to remove the stem and blossom ends.
Slice each lemon in quarters, leaving it attached at the very bottom.
Mix together the salt and sugar. Pour an equal amount into the cut sides of the lemons. Reshape each lemon and place them in a large bowl. Cover and refrigerate for 12-24 hours. Reserve the salt and juice in the bottom of the bowl.
Using an electric juicer, juice the lemons. Set the juice aside and discard the pulp vesicles and seeds.
Layer the rinds into the sterilized jar, skins sides up, and pack tightly. Sprinkle the peppercorns and bay leaves as you layer the lemons.
Pour the reserved juice and salt from the bowl, completely covering the lemon rinds (you may need more lemon juice to cover).
Close the jar and set aside at room temperature for 3-4 weeks, or until rinds are tender. Refrigerate the preserved lemons for up to 6 months.
To use the preserved lemons, chop the rinds (option to rinse them first if you are on a low sodium diet), and add them to a recipe. Are great cooked or raw!