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Cream butter and sugar until light.
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Beat in eggs, one at a time, beating well after each.
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Add vanilla, beat in peanut butter slowly.
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Sift flour with baking powder and salt.
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Stir into butter mixture, a little at a time, until well blended.
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Grease a tube pan; pour batter in and bake 45 minutes at 350°F; reduce heat to 325°F and bake until cake tests done, 15 to 20 minutes longer.
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Cool in pan on rack 10 minutes before removing to rack to cool completely.
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If desired, sprinkle chopped peanuts on cake towards the end of baking while batter is still soft to give it a crunchy topping.