Heat the apple butter in a small sauce pan over low heat. You are doing this to cook off some of the moisture, so cook until it looks thicker, stirring consistently, about five minutes. You will see the streaks of water disappear.
Remove the apple butter from the heat and stir in the cinnamon and the vanilla until combined. Then stir in the white chocolate chips and return to the heat. Continue stirring until the chips are melted.
Stir in the butter until melted.
Pour the mixture over the cereal in a large bowl. Mix until it is equally distributed.
While it is still hot, add the powdered sugar a little bit at a time until the cereal is completely coated.
Transfer the cereal to two cookie sheets so that it can cool in a single layer.
To make the streusel topping, preheat the oven to 350 degrees.
Mix the ingredients together with a fork. It will be a little chunky, and that is okay.
On a parchment lined baking sheet, spread half the mixture.
Bake the mixture for 8 minutes, but keep an eye on it. All ovens cook differently and you don't want it to burn.
Transfer the mixture (it will be in chunks) to a paper towel lined plate. Let it cool completely and then break it apart into bite sized pieces.
Repeat with the second half of the mixture.
After the muddy buddies and streusel topping have cooled completely, combine them and transfer to a container that can be completely sealed. Best when eaten within two days.