Preheat the oven to 350°F.  Line three baking sheets with parchment.  Double pan by placing the lined baking sheet on top of another baking sheet.  This will keep the bottoms of the cookies from over browning or burning.

Place the peanuts in a food processor.  Pulse to coarsely chop.  Remove ½ cup and set aside.  To the remaining peanuts in the processor, add ⅓ cup granulated sugar and pulse to finely chop the peanuts.  Remove to a bowl.  Set aside.

Cream the butter, sugar and ½ cup chopped peanuts until light and fluffy.

The dough will be soft but can be shaped.  Do not refrigerate or the peanut/sugar mixture will not adhere to the cookies.  Just use a light touch.  Scoop the dough with a #40 disher/scooper, scraping it off well.  Roll in the sugar/peanut mixture.

Alternatively, these can be shaped by rolling about 1 ½ tablespoons of dough into a ball then rolling it in the peanut/sugar mixture.

Place 12 equally spaced cookies on a half sheet pan as these will flatten and spread.

Bake for 9 minutes on the center rack, turn the pan and bake for 3 to 4 minutes more.

They will have flattened out, have a crinkle finish and be slightly puffy.  Cool slightly, then remove to cooling racks.