Measure cereal, set aside

In 1 qt microwaveable, microwave chocolate chips, peanut butter and butter uncovered on high 1 minute. Stir. Microwave about 30 seconds longer or until mixture can be stirred smooth. Stir in vanilla. Pour mixture over cereal, stirring until evenly coated.

Poor mixture over cereal, stirring until evenly coated.

Pour into 2 gallon resealable food storage plastic bag

Add powdered sugar. Seal bag

Shake until well coated.

Spread on waxed paper to cool. Store in airtight container in refrigerator.