1980–1992: Commercial success
In 1980, he recorded his first album, Vagabond, which was aimed at adults. The title track had been recorded by ex-pat Australians, the Seekers, in 1977. After two more years teaching, Combe issued his second album, Songs for Little Kids. It was recorded and produced by Combe at Axent Recording Studio in Sydney and appeared on ABC Records on cassette.
At that time, children's albums comprised nursery rhymes, which were sung and played in a simple traditional style. Combe recalled, "record companies used to think anyone could write songs for children, anything was good enough. You would get whole albums where the only accompaniment was acoustic guitar." Combe introduced new concepts in children's songs, writing to appeal to children and their parents: they were funny and relevant. He arranged them with contemporary instrumentation, using his Music Time experience to introduce children to different musical concepts, genres and instruments. Combe started performing concerts in schools – about 200 school shows a year over three years. His next cassette, Spaghetti Bolognaise and More Songs for Little Kids (1985), was soon renamed as Spaghetti Bolognaise after its lead track.
In 1986, he returned to England for an eight-month stay – he wrote material for his next album, Toffee Apple (June 1987). Back in Australia he met Diana Manson, then the head of ABC Music, and they worked on the first ever children's music video filmed in Australia – "Toffee Apple" – to promote the new album. The music video was played during children's programming on ABC TV, and helped established Combe as Australia's first kids' pop star: he was referred to as King of the Kids. At the ARIA Music Awards of 1988 Combe won the inaugural ARIA Award for Best Children's Album category for Toffee Apple.
In 1989, he won his second ARIA for Best Children's Album, for Newspaper Mama (1988). The Canberra Times correspondent described him as "the master of loony tunes for kids"; with this album having "a selection of original songs with the title track accompanied by an imaginative video." His next album, Chopsticks (September 1989), was also nominated in that category in the following year but it did not win. Peter Combe's Christmas Album (November 1990) reached the ARIA Albums Chart top 50. His first live album, The Absolutely Very Best of Peter Combe (So Far) Recorded in Concert (1991), won his third trophy for Best Children's Album, in 1992.
Touring highlights were selling out the Sydney Opera House (twice) and the Melbourne Concert Hall, Carols in the Domain in Sydney, Carols nights in Brisbane, Adelaide and Hobart, filming Christmas Under the Stars at the Adelaide Festival Centre, Family Concerts with the Adelaide Symphony Orchestra at the Festival Theatre and Entertainment Centre – plus numerous television appearances and radio interviews. Combe's albums have received 7 gold and 3 platinum accreditations.
From 1989 to 1991, Peter presented another radio program, Ticklepot, on ABC Radio National. His co-presenter Henry Salter played the part of Monkey, and the 10-minute program followed the adventures of Peter and Monkey through songs and stories. In all, 420 programs went to air over a period of 3 years. Ticklepot was voted best children's radio program in the world in New York in 1991.