Add Chex to a large mixing bowl. Melt the chocolate chips on the stove over medium-low heat, stirring regularly until melted and smooth.
Remove from heat and add peppermint extract and espresso powder. Stir until completely combined.
Poor melted peppermint mocha chocolate over the cereal and stir until coated. Be gentle when stirring as to not break the cereal.
Split the mixture. Place about 1/3 of mixture aside on wax paper. Spread it out evenly and sprinkle half of the crushed candy cane pieces on top.
Pour the powdered sugar into gallon sized ziplock bag and add the remaining chocolate coated cereal mixture. Zip bag closed and shake it up until all cereal is coated in sugar.
Lay out sugared mixture on wax paper to let cool and dry. Add both batches together into one large bowl then mix in the remaining candy cane pieces for some holiday flair!
Store in an airtight container for up to a week! Be sure to share with your friends or you might eat it all!