Spread a single layer of peanuts in a warm (not hot) wide skillet over medium heat. Make sure all the nuts are touching the surface of the pan so they brown evenly. I suggest roasting the nuts in two batches about 1 cup at a time if you have a small skillet.
Shake the pan or use a wooden spoon to stir every now and then until the nuts are brown and fragrant, about 4 to 5 minutes. Watch closely because they could easily burn. It should start smelling like popcorn when the nuts are done cooking.
Remove immediately and transfer to a plate to prevent residual heat from burning the nuts. Let it sit until cool enough to touch.
Remove the skin from the peanuts
Spread the peanuts in a dry kitchen towel. Wrap the nuts and rub them against each other. Do this a couple of times until all the skins are off.
Make the peanut butter
Transfer the peeled peanuts to a food processor or high speed blender. Blend until creamy, pausing to scrape the sides as needed or when it becomes clumpy. If the mixture gets hot stop and let it cool for a couple of minutes. Continue blending until texture becomes creamy.
Taste the peanut butter and season with salt or honey if you want it sweeter. Blend again to combine.
Transfer to a airtight jar or glass container with a tight lid.
Notes
To oven roast (if using more than 2 cups of peanuts):
Pre-heat oven to 350F/180c. Spread a single layer of the raw peanuts in a baking sheet lined with parchment paper. Bake for 10 to 12 minutes until brown and fragrant. Stir it half-way through to evenly roast all sides.
Storage and Shelf life:
Store in an airtight jar or glass container with a tight lid. Before placing the peanut butter, carefully pour hot water in the jar (make sure it’s heatproof) to quickly sterilize. Let it completely dry. Homemade peanut butter should be consumed within 3 to 6 months and must be stored in the fridge.