To crush cereal place in a zip lock bag and go over it with a rolling pin.
Mix powdered sugar and rice cereal in a large bowl.
Melt peanut butter and butter in a medium sauce pan over low heat. Pour over cereal mixture. Blend together with hands. Dough will take some kneading so be patient! Form into 1 inch balls. Chill until firm.
Melt chocolate chips in top of a double boiler over hot water. Don't let water boil or chocolate will burn. Dip balls in chocolate coating; swirl tops remove with tongs. Place on waxed paper lined baking sheet.