Place popcorn in a large bowl and quickly pick any unpopped kernels out
Place confectioners' sugar in a large gallon sized ziplock bag OR ***see notes below for alternate method of coating popcorn
Place chocolate chips and peanut butter in a microwave safe bowl and microwave for about 1 minute. Stir mixture, and if chocolate is not melted yet, continue to microwave in 15 second intervals, stirring between, until chocolate and peanut butter are melted and smooth.
Pour this mixture over the popcorn and gently stir and fold until popcorn is coated. A large silicone or rubber spatula works best for this.
Gently spoon popcorn mixture into the the bag with the sugar- it will be very full, close tightly, and shake to coat. Or use alternate method below.