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In microwave safe bowl melt the chips, peanut butter and butter on low power for 1-2 minutes. Mix until smooth. Do not overcook (the mixture could also be prepared in a double boiler). In a large bowl, pour the butterscotch mixture over the cereal and toss to coat evenly. Place the powdered sugar in a large paper or plastic bag and add the coated cereal squares. Toss until all of the squares are white. Spread squares on a tray lined with waxed paper and allow to dry for an hour. Combien coated cereal and the remaining ingredients in a large serving bowl. The mixture will stay fresh in an airtight container 2-3 days.
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