She then created the role of the Witch in Sondheim-Lapine's "Into the Woods" (1987). Peters is "considered by many to be the premier interpreter of work," according to writer Alex Witchel. Raymond Knapp wrote that Peters "achieved her definitive stardom" in "Sunday in the Park With George" and "Into the Woods". Sondheim has said of Peters, "Like very few others, she sings and acts at the same time," he says. "Most performers act and then sing, act and then sing ... Bernadette is flawless as far as I'm concerned. I can't think of anything negative." Peters continued her association with Sondheim by appearing in a 1995 benefit concert of "Anyone Can Whistle", playing the role of Fay Apple. Additionally, she appeared in several concerts featuring Sondheim's work, and performed for him at his 1993 Kennedy Center Honors ceremony.