Beat butter or margaine with peanut butter in a medium mixing bowl with an electric mixer on high for 30 seconds. Add granulated sugar, brown sugar, baking soda, and salt; beat till combined, scraping sides of bowl occaisionally. Beat in egg and vanilla until combined. Beat in as much flour as you can with mixer. Stir in remaining flour, peanuts and butterscotch chips with a wooden spoon.

Drop dough by rounded teaspoons 2 inches apart onto an ungreased cookie sheet. Bake in a 375 - degree oven about 7-9 minutes or until browned and edges are set. Transfer to wire racks and cool.