Junkie,
As you know the peltier works off a temperature differential.
The colder the cold side and hotter the hot side the better.
The Fan to keep heat sink cool will draw more power than the peltier will produce!
Better go back to the sauce pan, fill it with cold water! Should work good for a while. Add cold water, as needed. ICE works best!
Beware of getting the peltier's too hot, appear to be assembled with solder.
I melted a set, just when it was giving a decent output.
I am assuming this is more of a science experiment? efficiency of the peltier is worst than poor.
Try using a chimney effect, have the hot air below come up in a chimney keeping it away from the heat sink and sucking air from the cold heat sink, might make things work better without a fan.
Have fun,
Scott.