I've made nut butters in a blender before, and it is a PITA. At least with the blenders I've owned, it takes forever and I had to open and scrape down the sides every few seconds. Blenders don't like thick stuff! That said, it is easier if you add some liquid -- when I did make it in a blender, I'd add a drizzle of oil. If you're adding honey and CO, that will help immensely. Just don't add too much liquid or the nuts won't get as finely ground. (Edited to say don't add too much liquid at first -- until the nuts are ground well -- then you can add more.)
I make all my nut butters in the food processor now, which rocks. My fave is brazil nut butter.
I think if you didn't dry the nuts, you'd have something kinda weird, as the water would be released when you grind them. Watery nut butter, ew.