Place the peanuts into the food processor and let run a minute. The peanuts will go from nuts to tiny pieces of nuts.
It will start to build up the side and then fall back in.
Add the vanilla and keep processing until the peanuts break up more.
Stop the processors, scrape down the sides.
Continue processing the peanuts until they are smooth and creamy.
Video
Notes
To make this homemade peanut butter chunky, stir in half a cup of chopped nuts after processing. You can also swap the vanilla for maple flavoring to make a yummy maple peanut butter. Or add cinnamon to make cinnamon peanut butter.