Preheat oven at 350°F.

In large zipper bag, crush the cereal to very fine crumbs. Set aside.

Mix together the flour, salt and baking soda and set aside.

In a mixing bowl, beat the butter, granulated sugar and brown sugar until light and fluffy. Add the peanut butter and beat until well blended, then add the egg and vanilla and beat until fluffy, scraping sides of bowl occasionally.

Add flour mixture and stir until blended, then stir in the crushed cereal and peanuts.

Using a tablespoon, scoop up mounds of dough and put them on plates lined with foil or parchment. Chill slightly while you preheat the oven.

Preheat the oven to 350 degrees F. Line two baking sheets with parchment paper.

Shape the slightly chilled dough into neat balls. Dip in sugar (if desired), and arrange on baking sheets spacing 2 inches apart. Press down slightly.

Bake for 10-13 minutes or until lightly browned. Let cool on baking sheet for 2 minutes, then transfer to a rack to cool and let cool completely. These are not meant to be eaten warm -- the texture improves when cool.