Pour cereal into large bowl; set aside. In 1-quart, microwave-safe bowl combine chocolate chips, peanut butter and margarine.
Microwave for 1 to 1 1/2 minutes or until smooth, stirring after 1 minute.
Stir in vanilla. Pour chocolate sauce slowly over cereal, stirring to coat evenly.
Pour cereal into large plastic bag.
Add powdered sugar and secure; shake to coat well.
Add powdered sugar and secure; shake to coat well.
Notes
Store the muddy buddies recipe in a large ziplock bag or airtight container for up to a week on the counter for a yummy treat to snack on during the week.