Melt butter, chocolate chips and peanut butter in 3 quart saucepan. Pour cereal into a large bowl. Pour chocolate mixture slowly over cereal. Gently fold mixture over until all the cereal is covered.
In a medium size trash bag pour 1/2 of the powdered sugar. Put cereal mixture on it and pour in the rest of the powdered sugar. Tie top of bag securely and gently shake bag until each cereal is covered with powdered sugar and chocolate. After cooling, place in an airtight container. Will keep for several weeks.
