- Preheat oven to 300 degrees F.
- Combine water and honey (or sugar) in a saucepan. Bring to the boil, and stir until honey (or sugar) is dissolved, to make a syrup.
- Add peanuts. Continue to cook over medium heat, stirring regularly, until peanuts are evenly coated, and no syrup is left in pan.
- Spread nuts out on baking sheets. Bake at 300 degrees F for about 30 minutes to 1 hour until honey (or sugar) is completely dried.
- Gently stir the peanuts a few times while baking.
- Remove from oven and place on paper towels, let cool, and store in airtight containers.