Preheat oven to 350 F.
Prepare pork chops by slitting a pocket in the side of each for stuffing. In a skillet over medium-low heat, cook the onion in 1 tablespoon of butter for 3-5 minutes.
Turn off heat and add breadcrumbs, peanuts, salt and cayenne. Moisten with 1/4 cup evaporated milk. Mix well.
Fill each pork chop with the stuffing. Sprinkle the chops with salt and pepper on each side and dredge them in flour.
In a large, oven-safe skillet over medium heat, melt remaining butter and heat until it bubbles. Brown both sides of the pork chops, about 3-4 minutes per side.
Mix the water and remaining 1/2 cup evaporated milk and pour into the skillet. Cover and bake for about 30 minutes, or until the pork reaches an internal temperature of 145 F.
Remove the chops to a serving platter and let rest for 3 to 5 minutes.
Meanwhile, place the skillet over medium heat and simmer the pan juices, stirring frequently, until the gravy thickens slightly, about 3 to 5 minutes. If it’s too thick, add a splash of water or milk. If it’s too thin, continue simmering for a few more minutes.
Spoon the gravy over the pork chops before serving.