Preheat your oven to 350°F (175°C). Grease and flour two round cake pans.
Cream together the unsalted butter, sugar, and brown sugar until light and fluffy. Add in the peanut butter and sour cream, then mix in the vanilla extract and eggs.
Sift together the all-purpose flour, baking powder, and salt.
Gradually add the dry mixture into your wet ingredients while alternating with milk and water. Mix gently until just combined.
Divide the batter evenly between your prepared pans and bake for about 23 minutes or until a toothpick comes out clean.
Let the cakes cool in the pans for around 10 minutes before transferring them onto wire racks.
Prepare your frosting by beating together salted butter and peanut butter until smooth. Gradually add in powdered sugar and enough water/milk until you reach your desired consistency.
Once cooled completely, place one layer on a serving plate and spread frosting on top. Repeat with remaining layers and cover the entire cake with frosting.
Sprinkle some peanut butter chips on top for decoration. Drizzle melted chocolate if desired.