Combine chocolate chips, peanut butter, and salted butter in a medium microwave-safe bowl. Microwave on high for 30 seconds; stir, then microwave for 30 seconds more. Stir until smooth.
Add cereal to a large bowl. Pour chocolate mixture over cereal; stir gently until cereal is thoroughly coated.
Add coated cereal and powdered sugar to a large resealable plastic bag. Seal bag, and shake until cereal is coated. Serve immediately, or store in an airtight container up to 1 week.
