Prepare your coating station: In a very large bowl, measure out the Chex cereal. In a separate large bowl or ziplock bag, measure out the powdered sugar.

Melt the chocolate mixture: In a microwave-safe bowl, combine the chocolate chips, peanut butter, and butter. Microwave in 30-second intervals, stirring between each, until smooth and fully melted. Stir in the vanilla extract.

Coat the cereal: Pour the melted chocolate mixture over the Chex cereal in the large bowl. Gently stir until all the cereal pieces are evenly coated. This might take a bit of careful tossing.

Add the sweetness: Transfer the coated cereal to the bowl or bag with the powdered sugar. Seal the bag or cover the bowl and shake gently until the cereal is thoroughly coated in powdered sugar. If using a bowl, toss gently with a spatula.

Let it set: Spread the coated Muddy Buddies in a single layer on a baking sheet lined with parchment paper. Let them sit at room temperature for at least 15-20 minutes to set, or until firm.

Add extras (optional): Once set, you can gently toss in sprinkles, mini M&Ms, or other desired additions for extra flair and flavor.