This was my grandma's recipe. She would make it when my dad was just a little guy and he's now 68 - so it's a pretty old recipe. I haven't seen any recipe like this on JAP. It's unique and ohhhhhhh so yummy! It takes a little extra work, but believe me it's well worth it!!
In a bowl, cream shortening and sugar. Add egg and beat well. Combine the 1 1/2 cups of flour, baking soda and baking powder and add to creamed mixture slowly alternating with the buttermilk. Set aside 3/4 cup of the ground peanuts for the topping. Stir remaining peanuts into batter. Spread into a greased 13X9 cake pan. Bake at 350 degrees for 40-45 minutes or until a toothpick comes out clean from the center. Cool completely before frosting.
FROSTING DIRECTIONS- combine 1/2 cup of flour and the milk in a saucepan until smooth. Bring to a boil over medium heat stirring frequently. Cook and stir for 2 minutes or until thickened. Remove from the heat and cool completly. In a bowl cream the butter and the powdered sugar until fluffy. Add the cooled flour mixture and the vanilla and beat until fluffy -about 4 minutes. Spread over the cooled cake and sprinkle with the reserved ground peanuts.
*NOTE* Grandma and mom always used one of those old, silver, cast iron grinders to grind the peanuts. I do it as well because I just like the way the peanuts come out. You might be able to use a food processor, but personally I have never tried it. Just like keeping some of the old traditions I guess!