In a medium saucepan over medium heat, combine sugar and water. Heat and stir until the sugar is dissolved.
1 cup sugar, ½ cup water
Stir in the peanuts, turn up the heat to medium high and bring the mixture to a boil, stirring frequently.
2 cups raw peanuts
Continue to boil, stirring frequently, for about 15 minutes, until all the liquid is gone but the peanuts are still wet. (Note: the liquid will take on a reddish color.)
Spread the peanuts on a baking sheet and place in the oven for 10 minutes.
Flip/agitate the peanuts, and bake for another 10 minutes.
Flip/agitate the peanuts again and bake for another 10 minutes.
Try to let them cool before you start digging in! You don't want to burn yourself! :-)