1Chop candy coating into small pieces; place in heavy 10-inch skillet. Cover; heat over low heat about 5 minutes or until coating is soft; remove from heat. Stir until smooth and creamy.
2Stir in cereal until well coated. Stir in peanuts and marshmallows.
3Drop mixture by rounded tablespoonfuls onto waxed paper, or spread mixture evenly on waxed paper or foil. Sprinkle with candy sprinkles. Let stand 1 to 2 hours or until completely set.