Blend dry pudding mix and sugar in saucepan. Stir in evaporated milk. Add butter. Cook and stir over medium heat until mixture comes to a boil. Lower heat and boil gently for 3 minutes, stirring constantly. Remove from heat; stir in peanuts and vanilla. Beat immediately (while pudding is still very hot).- it will become somewhat dull. drop by tablespoonfuls on aluminum foil or waxed paper. Let cool until set. If candy becomes to stiff before all pieces are dropped, add a few drops hot water.
For Chocolate Clusters: use 1 pkg. (3 0z) chocolate pudding, chopped walnuts or raisins in place of vanilla pudding and peanuts.