In a large bowl, microwave peanut butter, chocolate chips, and butter in 30-second increments. Stir in between each time in the microwave until smooth. **most microwaves will only take 1 minute total to melt the ingredients.
Place cereal in a large bowl. Pour over melted chocolate mixture and stir to coat each piece of cereal. Sprinkle on powered sugar and gently toss cereal. Store in airtight container.