Pour cereal into a very large mixing bowl, then set aside.
In a microwave safe dish, combine white chocolate chips, peanut butter and butter. Microwave on high for one minute, then remove from microwave and stir well. If mixture can not be stirred smooth, return to microwave for 15 seconds, remove and stir well. If still not smooth, repeat process in 15 second heat and stir intervals. Add vanilla and stir.
Pour melted mixture over cereal in large bowl and stir to coat. Add a portion of the coated cereal to a Ziploc style freezer bag and add 1/2 cup powdered sugar. Shake gently until well coated. Remove coated muddy buddies and repeat process until all pieces are coated with powdered sugar. Spread onto a baking sheet to allow to cool.
Once cool, add Lucky Charms Marshmallows, pretzels and M&Ms candies (or other mix ins). Gently stir to combine. Store in an airtight container in the refrigerator.