Melt and combine the chocolate chips, peanut butter and butter in a double boiler. You can also microwave them, in 30 second intervals, stirring often. I prefer a double boiler, I just find it easier to melt everything without over doing it.
Pour melted mixture over the cereal and fold gently to coat the cereal.
Sprinkle the cereal with the sugar. Seal the bowl and gently shake and roll the bowl around to coat all of the cereal.
Place a large piece of wax paper on your countertop. Pour the cereal onto the paper, spreading it out evenly.
Let cereal cool completely before serving. Serve unused treats in the fridge.