In a large bowl, mix together the rice cereal and chopped dried apples.

In a saucepan, melt the butter and caramel sauce over low heat, stirring continuously until smooth, about 3-5 minutes.

Remove from heat and stir in the vanilla extract.

Pour the caramel mixture over the cereal and dried apples, then stir to coat evenly.

Sprinkle powdered sugar over the mixture and stir until well-coated.

Spread onto a baking sheet lined with parchment paper to cool completely, about 10-15 minutes, then break into pieces and serve.