It will probably take a little while of processing, but yes it will make peanut butter. I know food52 has a video somewhere of how to make almond butter using a food processor and it takes about five minutes. Peanuts will probably process to butter faster. As you're processing, it'll grind into a meal, then lump up like dough, and towards the end it will start spinning into a butter. The longer you process, the smoother it'll be. I like to add a little honey and a pinch of salt.
You may have to add a bit of oil as the FP works. Years ago I burned a motor out on a blender from making nut butters, so I try to ease the load, avoid overheating and shorten the working time. There should be plenty of oil in your peanuts, so I use as little as possible. My choice is to add nothing -- no salt, no sweetener.
The above answers are both good. While I have cut peanuts out of my diet I still enjoy other home made nut butters. One of my favorites is a 50/50 mix of pecans and almonds with a little bit of coconut oil to loosen things up. You do need a direct drive food processor for this as a belt drive can't handle the abuse.
Merrill is a co-founder of Food52.
Here's our almond butter video, referenced above: http://food52.com/blog... You can definitely use the same method to make peanut butter.
You can make nut butters using a Vitamix with little to no added oil and experience no problems with the motor (even over time). Vitamix breaks the nuts down quickly and due to high speed, will warm up the peanuts as they're ground making it easier once it starts to "butter".
And if you don't have a Vitamix - which I am luck enough to have - the food processor works brilliantly.
I found this video of two guys grinding up peanuts in a Wonder Junior Deluxe and they didn't add any oil at all. Seemed fairly easy, too.
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