1. Mix dry ingredients.
2. In a sauce pan, slowly melt margerine, chocolate morsels, and peanut butter, stirring constantly.
3. DO NOT BOIL.
4. Add vanilla and cool.
5. Pour sauce (about 1/3 at the time) over cereal mix and mix until well coated.
6. Pour into a large grocery bag and shake with the powdered sugar (about 1/2 box at the time).
7. Store in tightly covered container.