Place cereal into a large bowl.

In a medium microwave save bowl, combine chocolate chips, peanut butter, and butter. Heat in the microwave at 30 second intervals and stir till melted and smooth. Stir in the vanilla extract.

Pour the chocolate mixture over the cereal and toss till all of the cereal is completely coated in the mixture.

Place into a large paper or plastic bag or a large container with a lid.

Combine the powdered sugar and the powdered food coloring. Add the powdered sugar on top of the cereal mixture, close bag or place lid on container and shake well till the cereal mixture is well coated in the powdered sugar.

Transfer mixture to a baking sheet and let cool completely.