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Melt chocolate chips in a microwave-safe dish on medium power for 1 minute, stir and continue melting at 30-second intervals until smooth.
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Mix in Chex cereal until well coated.
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Add powdered sugar and the chocolate-covered Chex in a plastic bag and shake well.
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Put contents in a bowl and mix in crushed candy cane and M&Ms.
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Serve and enjoy.