1. Melt butter in a large saucepan on the stove or bowl in the microwave. Stir in peanut butter until well blended. Add powdered sugar and cereal. Mix well.
2. Refrigerate until mixture is firm enough to handle. Roll into small balls.
3. Melt chocolate chips and paraffin wax in double boiler or in microwave - stir to combine. Dip balls into chocolate mixture, leaving tops uncovered. Place on wax paper to cool.