In a large bowl, measure out 9 cups of Chex cereal.
In a microwave-safe bowl or saucepan, combine peanut butter, butter, and chocolate chips. Microwave in 30-second intervals, stirring in between, until melted and smooth.
Stir in the vanilla extract into the chocolate mixture.
Pour the chocolate mixture over the Chex cereal and stir gently until evenly coated.
Place the powdered sugar in a large resealable plastic bag. Add the coated cereal to the bag and shake until well coated with powdered sugar.
Spread the puppy chow onto wax paper or parchment paper to cool and set.
Notes
Store in an airtight container at room temperature for up to a week.