Using a blender cream together the vanilla, butter, and peanut butter. Now add the powdered sugar in small amounts until its all worked in. With a wooden spoon stir in the cereal.
Shape into balls just under 1 inch size place on a cookie sheet lined with foil. place the balls in the freezer until firm. A few hours or overnight.
Melt white coating in a double boiler or a small pan filled with water and a metal or glass bowl in it with the candy coating in the bowl.
Dip each ball in the coating, gently shake off excess coating, and set on foil lined cookie sheet again. Place m&m candy (m side down) in the center. Let cool until coating hardens.
You can serve them this way. We call them Mr Potato Head eye’s. We like to make them more scary. Using a toothpick dipped in the food coloring gel draw veins and small blood clots. Serve and enjoy!