Add the cereal and peanuts into a large bowl and set it aside.

Add the powdered sugar to a sealable bag and set it aside.

Add the chocolate chips to a microwave-safe bowl, heat for 30 seconds, stir well, and reheat as needed.

Once they are melted, stir in the caramel sauce and peanut butter, if adding. (if the mixture becomes hard, reheat it for 20 seconds.)

Pour the melted chocolate mixture over the cereal and stir carefully to cover.

Scoop half of the coated mixture into the bag with the sugar. Seal, and shake to coat the cereal.

Place the coated cereal on the lined baking sheet and repeat with the rest of the cereal.

Let the coated cereal set for 30 minutes to cool before serving.