Measure cereal in a large bowl and set aside. Microwave the chocolate chips, peanut butter, and butter on high for 1 minute. Mix and microwave for another 30 seconds, or until smooth. Add vanilla and mix. Pour mixture over cereal and stir until entirely coated. Pour mixture a baggie or large tupperware and add powdered sugar. Shake well until all pieces are coated. Spread out on wax paper to cool. Add sprinkles or m&m’s to add some color!