Melt butter, chocolate chips, peanut butter together in a small saucepan.

Place cereal into a large bowl and pour melted mixture over evenly.

Place one cup of powdered sugar into a paper bag. Place half the chocolate covered cereal into the bag and shake until it is coated. Pour coated cereal into large bowl.

Place another cup of powdered sugar into the paper bag with the second half of the cereal and shake to coat.

Pour coated cereal into large bowl and enjoy.

Freeze leftovers for awesome chilled treats.