In a large mixing bowl, combine the Rice Chex cereal and apple cinnamon cereal. Set aside.

In a small saucepan over low heat, melt the caramel sauce until it’s smooth. Stir in the vanilla extract and ground cinnamon.

Pour the melted caramel mixture over the cereal mixture, gently stirring to coat all the pieces evenly.

Once coated, transfer the mixture to a large resealable plastic bag. Add the powdered sugar and shake until the cereal is well coated.

If using, add the chopped peanuts to the bag and shake again to combine.

Spread the puppy chow onto a baking sheet lined with parchment paper to cool completely.

Once cooled, break into clusters and serve.