Muddy Buddies

9 cups Chex cereal
6 oz semi sweet chocolate chips (1 cup)
1/2 cup peanut butter
1/4 cup margarine or butter
1 teaspoon vanilla
1 1/2 cups powdered sugar

Measure cereal into large bowl; set aside.
Microwave chocolate chips, peanut butter, and margarine in 1 quart microwavable bowl uncovered on high for 1 minute; stir.
Microwave 30 seconds longer or until mixture can be stirred smooth.
Stir in vanilla.
Pour chocolate mixture over cereal in bowl, stirring until evenly coated.
Pour into large plastic food storage bag; add powdered sugar.
Seal bag; shake until well coated.
Spread on waxed paper to cool.
Store in airtight container in refrigerator.