Place peanut butter, powdered sugar and cereal into a large bowl. Mix until dough forms. Take 1 Tablespoon pieces and roll into balls. Freeze for 15 minutes.
Melt chocolate in a double broiler until smooth. Using a toothpick or skewer dip peanut butter balls into chocolate leaving top centers open. Let chocolate harden then place candy coated chocolate pieces in center of opening to form the eye. Serve chilled or room temperature.