Christmas Muddy Buddy Chex Mix

In a microwave-safe dish melt the peanut butter and unsalted butter. Microwave for 20-second intervals and mix at each interval until both butter and peanut butter are melted.
Add in half of the chocolate chips to the bowl and melt in the microwave. Microwave for 20-second intervals and mix at each interval until the chocolate is melted into the peanut butter mixture. Add in the remaining chocolate chips and repeat the steps until everything is completely incorporated.
Then add in the vanilla and stir.
In a large bowl, add half of the cereal and pour half of the peanut butter chocolate mixture over the cereal. Gently fold the melted chocolate into the cereal with a large spoon.
Once fully coated, add the coated cereal and half of the powdered sugar to a large ziplock bag. Seal the bag and shake until the cereal is fully coated. If you get larger chucks than desired separate by slightly pressing the larger pieces on the outside of the bag. Shake again until all the pieces are coated.
Pour the coated cereal pieces into a large serving bowl (This can also be tossed together on a large baking sheet or plastic container. Top this first layer with half of the: pretzels, M&Ms, white chocolate chips, candy canes, and sprinkles.
Repeat steps 4 and 5 for the second half of the coated cereal and powdered sugar.
Top this final layer with half of the: pretzels, M&Ms, white chocolate chips, candy canes, and sprinkles.
Store the room temperature in an airtight container for up two weeks.