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Measure cereal into large bowl; set aside. Microwave chocolate chips, peanut butter, and butter in 1-quart bowl uncovered on high 1 minute; stir. Microwave 30 seconds more or until mixture can be stirred smooth. Stir in vanilla. Pour chocolate mixture over cereal in bowl, stirring until evenly coated. Pour into large plastic food-storage bag; add powdered sugar. Seal bag and shake until well coated. Spread on waxed paper to cool.
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