In a microwave-safe bowl, combine the white chocolate chips and unsalted butter. Heat in 30-second intervals, stirring until smooth, about 1-2 minutes total.

Once melted, stir in the softened cream cheese until fully combined. Then, sprinkle in the cherry-flavored gelatin, mixing until well incorporated.

In a large mixing bowl, pour the Chex cereal. Slowly drizzle the creamy mixture over the cereal, gently folding to coat each piece.

Transfer the coated cereal into a resealable plastic bag. Add powdered sugar, seal tightly, and shake until coated.

Spread the mixture onto a parchment-lined baking sheet and let it cool for about 30 minutes.

Once cooled, break apart clumps and transfer to a serving bowl or individual bags.