Add the butter, peanut butter, marshmallow cream, and peanut butter chips to a microwave safe bowl.
Heat the bowl for 1 minute in your microwave. Carefully remove the bowl and stir until the chips begin to melt. Heat for another 45 seconds. Carefully remove the bowl from the microwave and stir the peanut butter mixture until smooth. (You'll have a few lumps from the marshmallow, that's okay.)
Add the rice cereal to a large mixing bowl. Pour the peanut butter mixture over the cereal. Use a spoon or spatula to stir the cereal until it is completely coated in the peanut butter.
Transfer the cereal to a gallon-sized Ziploc bag.
Add powdered sugar and bacon to the Ziploc bag. Seal the bag and shake vigorously until the cereal is completely coated in the sugar.
Transfer to a serving bowl, or refrigerate until ready to serve.
For a little extra marshmallow flavor, add 1 cup of mini marshmallows to the Ziploc bag before shaking!