Colloidal particles in nematic liquid crystals create elastic distortion and experience long-range forces. The symmetry of elastic distortion and consequently the complexity of interaction strongly depends largely on the liquid crystal anchoring, topology and shape of the particles. Here, we introduce a new nematic colloidal system made of peanut-shaped hematite particles. We report experimental studies on spontaneous orientation, mutual interaction, laser assisted self-assembly and the effect of external magnetic fields on the colloids. Majority of the colloids spontaneously orient either parallel or perpendicular to the nematic director. The colloids that are oriented perpendicularly exhibit two types of textures due to the out of plane tilting, which is corroborated by the Landau-de Gennes Q-tensor modelling. The transverse magnetic moment of the peanut-shaped colloids is estimated by using a simple analysis based on the competing effects of magnetic and elastic torques. © 2019, The Author(s).