melt the chocolate and the peanut butter together in the microwave. pour over all the ceral and peanuts in a clean big tub, (like an ice cream tub) mix wwell untill all the cereal is coated. Put 1 cup of powdered sugar in a grocery bag, put all the cereal on top, and then put another cup of powdered sugar on top. fold bag down, shake well, and then break big clumps that are in there. top with the last of the sugar, shake again, break the lumps and put into a air tight containar. It looks just like puppy chow, kids love it.