In a large mixing bowl, combine 3 cups of Chex cereal, 2 cups of pretzels, and 1 cup of peanuts. Use a gentle folding motion to ensure even distribution of the ingredients.

In a microwave-safe bowl, add 1 cup of white chocolate chips. Microwave in 20-30 second intervals, stirring after each burst, until melted and smooth. This usually takes about 1 to 1.5 minutes total.

Carefully pour the melted white chocolate over the Chex mixture. Using a spatula, gently fold the chocolate into the cereal until everything is evenly coated.

Line a baking sheet with parchment paper. Transfer the coated mixture to the sheet, spreading it into an even layer. Make sure there is maximized surface area for an even set.

Allow the mixture to cool at room temperature for 10-15 minutes until it firms up slightly. Resist the urge to dig in as the cooling helps create the desired crunch.

Sprinkle 1 cup of M&Ms over the cooled Chex mixture, pressing them gently into the mixture to stick.

Once set, break the Christmas Crack Chex Mix into bite-sized chunks and place them in a serving bowl or festive bags for gifting.