Microwave peanut butter and chocolate in large microwaveable bowl on HIGH 1-1/2 min.; stir until chocolate is completely melted and mixture is well blended.
Add cereal; toss to evenly coat.
Spread into single layer on waxed paper-covered baking sheets; separate cereal pieces. Cool completely.
Transfer cereal mixture to clean brown paper bag or large resealable plastic bag.
Add sugar; close bag. Shake gently to evenly coat cereal mixture with sugar.
