Create two VPCs , & assign the subnets, internet gateways , Route tables accordingly
Launch the EC2 instances on each of the VPCs created
Create the VPC peering connection on the VPC dashboard & assign the "FROM" & "TO" connections on the peering connection
Create the record on the route tables to pass the connection through the CIDR of the VPCs
Modify & configure the security groups accordingly
Here we have sucessfully configured the VPC peering on AWS
Problem with the VPC Peering
The VPC peering feature is used to connect only two instance at a time but VPC peering cannot work if there are more than two VPCs to connect with, So for this scenario the VPC Transit Gateway is used.