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In a high-powered blender or food processor, start pulsing the shredded coconut until it begins turning into a powder.
Add the coconut oil and blend on low continuously for about 5-6 minutes, stopping to scrape down the sides of the blender with a spatula.
Run the blender until the coconut is a smooth, buttery texture.
Add the peanut butter to the blender, and blend on high for 1-2 minutes, or until the mixture is thoroughly combined.
Taste and add sea salt, if desired.