Preheat oven to 350°F (175°C). Grease and lightly flour a 9x13-inch cake pan.
In a large mixing bowl, combine cake mix, eggs, softened butter, creamy peanut butter, and water. Beat until smooth and well combined.
Pour batter into the prepared pan. Bake for 25–30 minutes, or until a toothpick inserted in the center comes out clean. Allow to cool completely.
In a medium bowl, beat softened butter and peanut butter until smooth. Gradually add powdered sugar, alternating with milk, until fluffy. Stir in vanilla.
Spread the frosting evenly over the cooled cake.
Slice into squares and serve fresh.