No, She doesn't do that!
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No Princess Peach does not have a sister. Most people think Princess Daisy is her sister , but she's not. The reason why is because Mario likes Peach and Peach likes Mario . Also , Luigi likes Daisy and if Mario and Peach got married and if Luigi and Daisy got married that means it would be a big mix up in the family. So it would be weird if Daisy was Peach's sister.
Sadly, no...
There is no such episode.However, there was a 'Cavalcade of Cartoon Comedy'sketch in which he & Princess Peach appeared.See Provided Link (Uncensored ... just FYI)
They are sisters so they are related like Mario and luigi
Princess Peach of Mario