Preheat your oven to 350°F (175°C).
Spread the raw peanuts on a baking sheet and roast in the preheated oven for about 10-15 minutes, or until they are golden brown. Allow them to cool.
Once the peanuts are cool, grind them into a smooth paste using a food processor or blender. This will produce peanut butter.
Place the peanut paste into a large bowl.
Using your hands, knead the paste to extract the oil. This process involves squeezing the paste until the oil separates and can be drained off. You may need to do this in batches.
Set the extracted oil aside and continue until you have extracted as much oil as possible. The remaining paste should be dry and crumbly.
Mix the dry, crumbly peanut paste with salt and cayenne pepper (if using) until well combined.
Take small portions of the seasoned peanut paste and shape them into small, bite-sized balls or cylinders.
Heat vegetable oil in a deep frying pan over medium heat.
Carefully place the shaped peanut paste into the hot oil and fry until they are golden brown and crispy, about 2-3 minutes per side.
Use a slotted spoon to remove the kuli-kuli from the oil and place them on a paper towel to drain excess oil.
Allow the kuli-kuli to cool completely before serving.
Enjoy your meal!