Peeling skin inside mouth on cheeks and inside of lips both upper and lower. Almost look like blisters, and or dry skin painful lasts about a week?

Depends. There are multiple conditions that may cause your skin to peel inside your mouth. Including infections like hand and mouth disease, drug reactions like stevens johnsons syndrome, immune system disorders like pemphigus go to a doctor for evaluation. They can do labs and biopsy the skin to find out why.