Preheat oven to 325 degrees.
In a large bowl pour hot water over the butter.
Stir in powdered milk and egg.
Add flour 1/2 cup at a time and stir well.
After 2 cups of flour are added, mix in the peanut butter.
Knead for a few minutes to form a stiff dough.
If the dough feels too sticky add in another 1/4 cup of whole wheat flour.
Pat or roll dough to 1/2 inch thickness.
Cut into bone shapes or any shape you prefer.
Bake for 50 minutes or until golden brown.
Let cool.