Measure out the Rice Krispies cereal, chocolate chips, peanut butter, unsalted butter, and vanilla extract.

In a microwave-safe bowl, melt the chocolate chips and peanut butter in 30-second intervals, stirring until smooth.

Add the melted butter and vanilla extract to the melted chocolate and peanut butter mixture. Stir until well combined.

In a large mixing bowl, combine the Rice Krispies cereal with the chocolate-peanut butter mixture. Gently fold until the cereal is evenly coated.

Spread the coated cereal mixture onto a baking sheet or into a pan. Allow it to cool and set before cutting into squares.

Transfer the cooled bars into a large resealable plastic bag. Add the powdered sugar to the bag, seal it, and gently shake to coat the cereal bars with sugar.

Cut the Muddy Buddy Rice Krispies into squares and serve.