Grandma Jones' Peanut Butter Fudge

2 cups sugar
1/2 cup evaporated milk
1 t water
1 cup peanut butter
1 T butter

Mix together the sugar, milk, and water. Cook on medium heat until it forms a soft ball when tested in cold water. Remove from heat, add the peanut butter and butter. Mix well and beat for a few minutes. Pour into a 9x9 or larger pan.