Place cereal in large bowl. Set aside. Microwave white chocolate, marshmallow creme and peanut butter in medium microwavable bowl on HIGH 1 minute; stir. Microwave 20 to 30 seconds longer or until mixture can be stirred smooth. Stir in coconut flavor.
Pour over cereal; toss until evenly coated. Add coconut; toss to coat well.
Spread in single layer on wax paper-lined baking sheet. Let stand 10 minutes or until cooled. Sprinkle with confectioners’ sugar; toss again to coat well. Store in airtight container.