He started out in one of Darth Baker's kitchen cabinets next to other Siths-to be, Darth Yeast and Darth Slice. After the success of Darth Yeast, Baker decided to yet make another Sith Lord made of food. Baker took Peanut from the cabinet, spread him on a piece of toast and added a sprinkle of EVIL. However, due to the fact that Baker couldn't resist eating Darth Peanut, it took several attempts to create the evil peanut Sith that would last longer than 24 seconds.
Later on in his life, Darth Peanut chose the weapon of the M-hilted lightsaber due to his (so called) similarities to a peanut M&M. When he got to meet the M&Ms in person, (or should I say peanut) he had an epic duel with them on Mt. Meatballs. Peanut used his stupid Force powers such as Force fudgemallow and Force crazy to great effect. However in the end, the peanut slipped in a puddle of melted chocolate and fell to his death. Some say Peanut went to Heaven but others say he is now in the Big Supermarket in the Sky.