Mix dry ingredients. In a sauce pan, slowly melt margerine, chocolate morsels, and peanut butter, stirring constantly. DO NOT BOIL. Add vanilla and cool. Pour sauce (about 1/3 at the time) over cereal mix and mix until well coated. Pour into a large grocery bag and shake with the powdered sugar (about 1/2 box at the time). Store in tightly covered container. This makes enough for a crowd and is nice for gifts. It is a sweet version of the popular Nuts and Bolts. This was given to us Christmas 1991 by Mary Alice King of Dixie Union, Georgia.