1.  In microwave or in a very large pot over low heat, melt peanut butter and chocolate chips, stirring frequently.

2.  Remove from heat and add cereal, stirring gently to coat well.

3.  Put half of powdered sugar in large (1 -2 gallon) plastic resealable bag (like Ziploc) .  Shake.

4.  Add half of cereal mixture to bag.  Shake gently until all pieces of cereal are coated with sugar.   Empty contents into clean Ziploc bag or airtight container.

5.  Repeat steps 3 and 4 with remaining sugar and cereal mixture.

Store in Ziploc bag or other airtight container until ready to serve.