Measure rice cereal into a large bowl and set aside.
Microwave Butter, Peanut Butter, and chocolate together in a bowl. Mix every 30 seconds until melted and smooth. This should only take 2-3 sessions.
Add vanilla to chocolate mixture.
Pour chocolate over cereal and mix with a large spoon until all cereal is covered.
Transfer the mixture to large ziplock baggies.
Pour powdered sugar into the bag with the cereal mix.
Shake, Shake, Shake the bag!
Spread on a greased cookie sheet and cool on the counter.
Store tightly sealed in the fridge.