Heat chocolate chips, peanut butter, and butter in microwave uncovered on high in 20 second bursts, stirring between bursts, until melted. It usually takes around 60-90 seconds.

Stir in vanilla.

Pour over the cereal in a large bowl and toss to coat. Be careful not to stir too vigorously and crush the cereal.

Transfer to a large 2-gallon ziploc bag and add the powdered sugar.

Seal bag and toss the chocolate coated cereal until it is all coated in powdered sugar.

Then add seasonal candies if desired.