Start by dividing the cereal evenly into two bowls so each batch can be coated separately in red and pink candy. This keeps colors bright and prevents muddy blending. Working in batches also makes mixing easier.
Place candy melts and a teaspoon of oil into microwave-safe bowls. Heat in short bursts, stirring between intervals until smooth and fully melted. The oil keeps the coating fluid and easier to pour.
Pour melted candy over cereal and gently fold until evenly coated. Transfer coated cereal into a resealable bag with powdered sugar, then shake until each piece is fully covered.
Spread coated cereal on parchment paper to cool completely. Once set, combine both colors in a large bowl and mix in M&M’s and sprinkles for the final festive touch.