Put the cereal into a large mixing bowl and set aside.
Add the chocolate chips, peanut butter, and butter to a medium-sized microwaveable bowl.
Microwave for about a minute. Stir the mixture, then microwave in 15 second intervals (stirring after each) until melted and creamy.
Add the vanilla and stir until combined.
Pour the chocolate mixture over the cereal. Mix until the pieces are well coated.
Open up a large resealable plastic bag. Pour in one cup of powdered sugar, then about half of your cereal mixture. On top, add another 1/2 cup of powdered sugar and zip the bag tightly.
Start shaking the bag (we recommend doing this over a sink or garbage can in case of any spills or loose powdered sugar!) and shake until the pieces are evenly coated. Add more powdered sugar, if needed. Pour into a clean bowl/container.
Repeat steps six through eight with the second half of your cereal. You can use the same bag if the seal still works.
Serve and enjoy! This stays fresh in a tightly sealed container for 2-3 days.
