Gather all ingredients.
In a microwave-safe bowl, combine chocolate chips, peanut butter, and butter.
Microwave the mixture in 30-second intervals, stirring until smooth.
Stir in vanilla extract.
Place Chex cereal in a large mixing bowl.
Pour the melted chocolate mixture over the Chex cereal.
Gently stir until all pieces are coated.
In a separate bag, add powdered sugar.
Transfer the coated cereal into the bag and shake until well coated.
Spread the mixture on a baking sheet to cool.