No-Bake Peanutty Granola Bites

1 c. powdered sugar
1/3 c. milk
1 1/2 c. quick or old-fashioned oats, uncooked
1 tsp. vanilla extract
1 c. creamy peanut butter
1 1/4 c. (7.5 oz.) peanut butter and chocolate milk chocolate morsels
1 c. granola cereal

Line baking sheets with waxed paper. Combine powdered sugar, peanut butter, milk and vanilla extract in large bowl; mix with wooden spoon. Stir in oats, cereal and morsels; mix until cereal is completely coated. Roll and press mixture into 1-inch balls; place on baking sheets. Let stand until firm. Store in tightly covered container in refrigerator. To take along, keep in cooler.