Combine nectarines, water and honey in saucepan; cook over medium-high heat until nectarines are soft. Remove from heat. Puree in blender or food processor. Stir in lemon juice, vanilla and apple juice. Chill until cool.
Whisk yogurt into nectarine mixture. Pour into an 8 X 8-inch pan and freeze until crystals form around edges, about 45 minutes. Stir crystals intomiddle of pan and return to freezer. When lightly frozen through, whip mixture until light in color. Spoon into storage container and freeze until firm. Let soften at room temperature 10 minutes before serving.