Preheat oven to 350°F. Grease a 9x9 baking dish and set aside.
In a bowl, whisk flour, sugar, soda and salt together. Set aside.
In a medium saucepan bring butter and water to a boil. Remove from heat and whisk in peanut butter and oil. Add eggs, buttermilk and vanilla. Beat well.
Stir dry ingredients into saucepan and stir just until combined.
Pour cake batter into prepared pan and bake for 20-25 minutes or until a wooden skewer comes out clean. Prepare frosting while cake is finishing baking.
Frosting
Melt butter, peanut butter and buttermilk together in a saucepan, then bring to a boil. Remove from heat and beat in vanilla.
Add powdered sugar 1/2 cup at a time beating until smooth.*
Pour the warm frosting over the hot cake and spread evenly. Garnish with chopped peanuts.
Notes
* If the frosting gets too thick, add more buttermilk until it's thin enough to pour over the cake.