Peterman is from Minneapolis, Minnesota, USA. After graduating from Minnesota State University with theater as one of her majors, she was cast as Madeline Monroe in Hey City Theater's production of "Tony & Tina's Wedding". After more than 600 performances, she went on to work as a writer and performer at the improvisational comedy theater The Brave New Workshop. While with the Brave New Workshop, she also performed at the Chicago Improv Festival and the Big Stink Comedy Festival in Austin, Texas. She made her film debut as Hooker #2 in the Coen brothers' Oscar-winning movie Fargo (1996). On television, she appeared in the Oxygen sketch comedy show Running With Scissors and guest-starred on Just Shoot Me. Peterman currently lives in Los Angeles with her husband, fellow actor 'John Brady' .