1In small bowl, mix sugar, chili powder and red pepper.
2In large microwavable bowl, microwave butter uncovered on High about 30 seconds or until melted. Stir in cereal and nuts until evenly coated. Stir in sugar mixture until evenly coated.
3Microwave uncovered on High 3 to 4 minutes, stirring after 2 minutes, until mixture just begins to brown. Spread on waxed paper; cool about 15 minutes. Store in airtight container.