Nut butters and nut spreads having improved sensory and textural characteristics are prepared by (a) mixing together nut solids, a stabilizing composition, and optionally an emulsifier: (b) introducing the mixture into a mill comprising a stator and a circularly rotating rotor capable of grinding the mixture while producing centrifugal forces; and (c) grinding the mixture such that the particles of the mixture impact with one another and the rotor/stator forming a ground paste. The method can be used to produce regular and reduced calorie and/or reduced fat nut butter or nut spread compositions such as peanut butter.