Measure cereal into a large bowl and set aside.
In a separate, medium-sized, microwave-safe bowl, combine chocolate chips, peanut butter, and butter.
Transfer to the microwave and heat for 30-second intervals, stirring well between, until chocolate is completely melted and mixture is smooth.
Stir in vanilla extract.
Pour chocolate mixture over your cereal and use a spatula to gently stir (you dont want to crush your cereal pieces!) until all cereal is coated in chocolate.
Once all cereal is well-coated, add powdered sugar to the bowl and use a spatula to stir until all cereal is coated with powdered sugar. Add more sugar as needed. Enjoy!
