Festive Muddy Buddies

3 cups Chex Corn cereal
3 cups Chex Rice cereal
3 cups Chex Wheat cereal
1 cup semisweet chocolate chips
1/2 cup peanut butter
1/4 cup butter or margarine
1 tablespoon vanilla extract
1 1/2 cups confectioners' sugar
8 ounces M&Ms chocolate candy (Christmas colors)
8 ounces dry-roasted peanuts

Pour cereals into large bowl; set aside.

In a 1-quart microwave-safe bowl combine chocolate chips, peanut butter and butter. Microwave on HIGH for 1 to 1 1/2 minutes or until smooth, stirring after 1 minute. Stir in vanilla extract. Pour chocolate mixture over cereals, stirring until all pieces are evenly coated. Pour cereal mixture into large resealable plastic bag with confectioners' sugar. Seal securely and shake until all pieces are well coated. Spread on wax paper to cool.