I do buy a lot of suet, Gita. I usually buy it at the bird food store; it's softer and easier to mix than the blocks sold at Giant, for example.
I started mixing suet and peanut butter when my youngest daughter gave me 2 peanut butter feeders; one looks like this and the other is very similar:
http://www.allforbirds.com/eve...
I wanted to use the feeders because she gave them to me, but I knew that squirrels would immediately find and eat the peanut butter. Somehow I came up with the idea of blending hot pepper suet, regular suet and peanut butter and smearing it on instead of plain PB. Now I use that blend in any suet feeder the squirrels can get to because they leave it alone.