Measure out the ingredients and set them aside in bowls
Over low heat in a heavy-based saucepan, melt butter, then add chocolate chips and peanut butter.
With a spatula, stir continuously until all the chocolate chips have melted, and add in the vanilla extract at this point.
Gently pour the mixture on the 2 cups of Chex cereal in the mixing bowl.
Mix the melted butter, peanut butter and chocolate with a spatula until all the cereal is coated.
Add some colored sprinkles, red and green M and M's onto the mixture, and stir till the candies are evenly distributed in the cereal chocolatey mixture.
Put the powdered sugar into the plastic bag, and add the chocolate-coated Chex cereal.
Zip the bag and gently toss it, coating the cereals with powdered sugar.
Transfer the contents to a tray lined with a baking sheet, let them sit at room temperature, and allow them to dry for around 10 to 15 minutes.
Once they have dried up, you can serve or store them in an airtight container for freshness.