Begin by measuring out your Chex cereal and placing it in a large mixing bowl. Set it aside for later.
In a medium saucepan, combine the milk chocolate chips and vegetable oil. Heat over low, stirring frequently until the chocolate is completely melted and smooth.
While the chocolate is melting, chop your Kit Kat bars into small pieces. Once the chocolate is smooth, remove the saucepan from heat and fold in the chopped Kit Kat pieces until they are coated in chocolate.
Pour the chocolate-Kit Kat mixture over the Chex cereal in the large bowl. Gently stir with a spatula until all the cereal is coated evenly.
In a large zip-top bag, add 1 cup of powdered sugar. Once the cereal mixture is thoroughly coated with chocolate, carefully add it to the bag. Seal the bag and shake until the cereal is well coated in powdered sugar.
Spread the coated cereal mixture onto a cookie sheet lined with parchment paper. Allow it to cool for about 30 minutes.
