HOW TO PEEL A BUTTERNUT SQUASH: After trying just about every method and knife, I have come to the conclusion that the best way to peel the hard skin off a butternut squash is with a good, old-fashioned vegetable peeler, especially the kind in which the peeling blade extends across a U-shaped top, perpendicular, not parallel to the handle. Lay squash on its side and cut it in half, separating its round bottom from its thick neck. You can cut each of those halves in half as well, for better handling. Lay the quash pieces on their flat side and just peel away the skin with a vegetable peeler. Remove the seeds. Cut the squash as needed!