In 1-quart microwavable bowl, microwave chocolate chips, peanut butter and butter uncovered on High 1 minute; stir. Microwave about 30 seconds longer or until mixture can be stirred smooth. Stir in vanilla.
Pour mixture over cereal, stirring until evenly coated.
Pour into 2-gallon resealable food-storage plastic bag.
Add powdered sugar. Seal bag; shake until well coated.
Spread on waxed paper to cool. Store in airtight container in refrigerator.
