Prepare your work area by lining a baking sheet with parchment paper.
In a large mixing bowl, combine the Rice Chex cereal and chopped maraschino cherries. Set aside.
In a microwave-safe bowl, combine the white chocolate chips and cream cheese. Heat in the microwave in 30-second intervals, stirring in between, until melted and smooth.
Stir in the vanilla extract into the melted mixture.
Pour the melted mixture over the Rice Chex cereal and cherries. Gently fold to coat all the cereal pieces evenly.
In another microwave-safe bowl, melt the cherry-flavored candy melts following the same method as before.
Once melted, pour the candy melt mixture over the coated Rice Chex, folding gently to ensure even coating.
In a Ziploc bag, add the powdered sugar and the coated cereal mixture. Seal the bag and shake well until all pieces are well-coated with powdered sugar.
Spread the Puppy Chow onto the prepared baking sheet to cool. Optionally, sprinkle with additional sprinkles for decoration.
Allow to cool completely before serving.