Add the rice chex cereal to a large mixing bowl and set aside.

In a microwave-safe bowl, combine chocolate chips, peanut butter, and butter. Heat in 20 to 30 second intervals, stirring after each interval, until fully melted and smooth.

Stir in the vanilla extract until well combined.

Pour the melted mixture over the cereal. Gently fold and mix until all pieces are evenly coated without crushing the cereal.

Transfer the coated cereal into a large zip-top bag. Add powdered sugar.

Seal the bag tightly and shake well until every piece is fully coated in powdered sugar.

Spread the mixture onto a parchment-lined baking sheet in a single layer. Let it cool for several minutes until the coating sets.

Transfer to a serving bowl or store in an airtight container.