In a 1-quart microwave-safe bowl combine chocolate chips peanut butter and margarine microwave on High for 1 to 1 12 minutes or until smooth stirring after 1 minute
Stir in vanilla
Pour chocolate mixture over cereals stirring until pieces are evenly coated
Pour cereal into a large resealable plastic bag with powdered sugar
Seal securely and shake until all pieces are well coated