with open('temp.txt', 'r') as inpf2:
    while True:
            c = [inpf2.read(1)]
            if not c:
                break
            k = c.peek(2)
            for d in k:
                if(d == ""):
                    break
                else:
                    c = c.append(d)
            print c

k = c.peek(2)
AttributeError: 'list' object has no attribute 'peek'.

k = inpf2.peek(2)

from collections import deque

with open('temp.txt') as infile:
    window = deque(infile.read(2), maxlen=3)
    nextchar = infile.read(1)
    while nextchar:
        window.append(nextchar)
        print "".join(window)
        nextchar = infile.read(1)