In a microwave safe bowl, heat the candy melts and peanut butter for 30 second increments, stirring well between, until melted.

Pour over the cereal and mix to coat.

Put 1 cup of powdered sugar into two separate plastic storage bags.

Add half of the coated cereal to each bag.

Shake the bags well to coat the cereal in sugar.

Allow the coated cereal to set for 1 hour.

Before serving, add M&M candies and heart sprinkles.