I went out for a run and came across this on the ground. As a environmental enthusiast my little kid in me took over and picked it up and brought it home. I noticed it was on the tree as well but I forgot to take any leaves or notes for tree ID. So now all I have is an alien baby. I cut it in half and smells like peaches however it does not resemble a peach pit.
Spring just arrived although it is very cold today. I live in NJ!

It looks like an gall. It's not a plant or an alien baby (but I agree that they are totally weird). I took some photos of ones I found in my yard, mine are oak galls, and will come back to show you if I can find the darn things.

Edited to add. I cannot find my original photos but here are some threads with photos of other types of galls.
The thread "Oak galls" in Trees and Shrubs forum
The thread "Help with identification" in Plant ID forum
The thread "what's falling out of my oaks?" in Trees and Shrubs forum

greene said:It looks like an gall. It's not a plant or an alien baby (but I agree that they are totally weird). I took some photos of ones I found in my yard, mine are oak galls, and will come back to show you if I can find the darn things.

Edited to add. I cannot find my original photos but here are some threads with photos of other types of galls.
The thread "Oak galls" in Trees and Shrubs forum
The thread "Help with identification" in Plant ID forum
The thread "what's falling out of my oaks?" in Trees and Shrubs forum

Hey, thanks for your post! So I have not heard of oak galls till now, but it seems they are very similar to tree tumors. I actually have one on a twig that is really cool. Very similar too, it has the holes and weird blotchiness to it and shape. However, as you can see in this one I posted it is actually soft and squishy inside like a berry and smells like a peach. So I believe it can be an oak gall but wouldn't it be solid throughout?

I agree, it appears to be some sort of tree gall, usually caused by insects or wasps.
http://www.missouribotanicalga...

Horned Oak Gall image: http://1.bp.blogspot.com/_HV-D...

Bur Oak Gall image: http://bugguide.net/node/view/...

Looks like a cedar rust fruiting body (before threads), to me.
I pick those off the tree and dispose of properly.
http://www.viette.com/v.php?pg...

stone said:Looks like a cedar rust fruiting body (before threads), to me.
I pick those off the tree and dispose of properly.
http://www.viette.com/v.php?pg...

Looks like a good posibility. I found several photos online that show a similar item labeled as the 'overwintering stage' of the cedar rust.

It does resemble the Cedar Apple Rust Gall:
http://hyg.ipm.illinois.edu/ar...
https://jonesfamilyfarms.files...

No question.

Cedar Apple Rust.

a spent Cedar Apple gall

I guess that puts the case to rest! Thanks guys!