Combine Dry Ingredients: In a medium bowl, whisk together 1 cup of powdered sugar, the powdered milk, and salt (if using). Set aside.
Cream Honey and Peanut Butter: In a large bowl or stand mixer, combine the honey and creamy peanut butter. Cream together for 3-4 minutes, or until fluffy and smooth.
Add Dry Ingredients: Gradually add the dry ingredients to the honey-peanut butter mixture, beating until a dough comes together.
Knead Dough: Knead the dough with your hands until it is smooth and well combined.
Shape Logs: Divide the dough in half. Roll each half into an even log.
Chill: Wrap each log tightly in plastic wrap and refrigerate for 1-2 hours, or until thoroughly chilled.
Slice and Coat: Once chilled, slice the logs into 1/4-inch thick slices. Coat each slice generously in powdered sugar.
Serve: Enjoy your Old-Fashioned Cafeteria Peanut Butter Candy!
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