Dry roast the peanuts in a pan on low to medium flame for 8-10 minutes. Keep stirring the peanuts so that they do not burn.
Rub the peanuts while they are hot with a kitchen towel to remove the skin.
Transfer the peanuts to a food processor while they are warm and pulse a few time until you get a coarse powder.
Run the blender or food processor continuously for 1 minute. Stop and scrape down the sides and bottom of the bowl. At this point, the peanut butter will look dry.
Run the food processor for another 1 minute continuously. Stop and scrape. At this point the butter will start clumping together. Have patience, do not give up. You are almost there.
Run the processor for another 1 minute continuously. Now you will get a thick butter, at this point add the oil, salt and honey and continue processing the butter for additional 1-2 minutes until you get a smooth peanut butter.
Scrape the butter and transfer it to an air tight jar and refrigerate. Use as per need.