In a microwave-safe bowl, combine red candy melts, creamy peanut butter, and vegetable oil. Microwave on high for 30 seconds, stir, and continue cooking in 15-second intervals until melted and smooth.
Meanwhile, pour chex cereal in a large bowl.
Pour the melted peanut butter and candy mixture over the cereal and quickly stir to coat.
In a one gallon ziplock bag, pour the powdered sugar. Then pour the coated cereal into the gallon bag. Seal close and shake to coat the cereal.
Pour onto parchment paper lined cookie sheet and allow to cool.
Repeat the process with green candy melts, the remaining creamy peanut butter, the remaining vegetable oil, the remaining Chex cereal, and the remaining powdered sugar using the second one-gallon ziplock bag.
Once both the red and green puppy chow are cooled, combine them on a baking sheet or in a large bowl and sprinkle Christmas M&M’s over the top. Stir gently to combine.
Store in an airtight container for up to a week.
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Notes
This recipe makes a big batch so it’s perfect to hand out to friends, neighbors and more for the holiday.