Add the cereal to a large bowl.
9 cups chex cereal
In a large measuring cup, melt the white chocolate chips, creamy peanut butter, and butter together on high for 1 1/2 minutes, stirring at each 30-second interval. Once smooth, stir in the vanilla extract and stir the mixture until smooth.
1 cup white chocolate chips, 1/2 cup creamy peanut butter, 1/4 cup unsalted butter, 1 teaspoon vanilla extract
Pour the mixture over the cereal. Stir to combine. Use clean hands if necessary.
Pour the mixture into a clean plastic bag. Pour 1 1/2 cups of powdered sugar over the mixture and shake to combine. Add more powdered sugar as needed until the whole mixture is coated.
Toss in the sprinkles and the M&Ms.
1/4 cup Christmas sprinkles, 1/2 cup red and green M&Ms
Store in an airtight container for up to 2 weeks.