In a small bowl, combine the chocolate chips, peanut butter, and butter.
Place small bowl in microwave and heat in 30 second increments until mixture is smooth and creamy.
Pour chocolate evenly over cereal and carefully toss to coat thoroughly.
Sprinkle powdered sugar on top of coated cereal and toss to coat thoroughly or place powdered sugar into Ziploc bag and add in chocolate cereal. Shake until coated.
Spread on parchment or wax paper. Let sit until cool and chocolate is set. Enjoy in the bowl as is, or serve in small cups, place in bags, etc.