1Into large bowl, measure cereal; set aside.
2In 1-quart microwavable bowl, microwave chips, butter, lemon peel and juice uncovered on High 1 minute; stir. Microwave about 30 seconds longer or until mixture can be stirred smooth. Pour mixture over cereal, stirring until evenly coated. Pour into 2-gallon resealable food-storage plastic bag.
3Add powdered sugar. Seal bag; gently shake until well coated. Spread on waxed paper or foil to cool. Store in airtight container.