Here is how to make yummy peanut butter.
Start with one cup of shelled, ROASTED peanuts.
Add 2 TBSP of oil.
I added just a smidgen of honey for sweetness, but not necessary.
The roasting is the important step that I missed before. To roast peanuts, simply put in a 350 degree oven for about 20 minutes (laid out flat on a baking sheet).