Place Rice Chex in a large mixing bowl and set aside.
Scoop 2 cups powdered sugar into a large Ziploc bag.
In a small pot, melt butter, peanut butter, vanilla, chocolate chips, and butterscotch chips on LOW heat until smooth and well combined, stirring the entire time.
Pour melted mixture over Rice Chex and mix well until all the cereal is evenly coated.
Pour this mixture into the bag of powdered sugar and shake until all the cereal is coated.
Spread over wax paper to cool.
When ready to serve mix with 1 cup of Holiday M&Ms.
Store in airtight containers.
Notes
Store in an airtight container at room temperature or in the fridge for up to a week, or store in a freezer bag and freeze for up to 3 months.