Measure cereal into a large bowl. Set aside.
Divide powdered sugar between two ziplock bags, adding 1 cup to each bag. Set aside.
In a saucepan add chocolate chips, butter, and peanut butter (and salt, if using unsalted butter) and cook over medium-low heat, stirring, until melted and smooth. (Don’t over-heat it--just warm it until melted and smooth.)
Remove from heat and stir in the vanilla extract.
Pour over the prepared cereal in the bowl and stir to coat evenly. Allow to cool for a few minutes.
Divide coated cereal between the two ziplock bags with powdered sugar, seal the bag and shake to coat the cereal.
