In a medium bowl, combine confectioners' sugar and peanut butter. Mix well and press mixture into a 9 inch pie dish.
Prepare vanilla pudding according to package instructions and allow to cool. Preheat oven to 375 degrees F (190 degrees C.)
When pudding has cooled, pour it into peanut butter pie shell. In a medium glass bowl, beat egg whites until stiff peaks form. Spread meringue over pie, covering completely. Sprinkle with chopped peanuts.
Bake in the preheated oven for 15 minutes, or until golden brown.