Pour cereal in a large bowl.
Microwave the chocolate chips, peanut butter, and butter for 30 second intervals until it’s melted. You can also melt on the stove top over low heat. Stir well to make sure everything is combined and then add the vanilla.
Pour the chocolate mixture onto the cereal and stir gently until it’s coated. Toss sprinkles in if adding.
Add the cereal to a large ZipLoc bag along with the powdered sugar, and gently shake until it’s coated.
Pour the mixture into a serving bowl. Add a few more sprinkles if they fell off. Serve and enjoy!
*optional: add 1/2 teaspoon peppermint extract with the vanilla extract for a minty twist! You could even swap the sprinkles with crushed candy canes.