Line a large baking sheet with parchment paper and set aside. Place the rice cereal in a large mixing bowl.

In a microwave-safe bowl, combine butterscotch chips, caramel sauce, and melted butter. Microwave in 20-second intervals, stirring between each, until smooth and fully melted.

Stir in vanilla extract to the melted mixture for added aroma.

Pour the warm butterscotch-caramel mixture over the cereal. Gently fold the cereal with a rubber spatula until evenly coated, being careful not to crush it.

In a separate bowl, mix powdered sugar and crushed graham crackers. Sprinkle this mixture over the coated cereal, tossing gently to cover all pieces. Work in batches to avoid clumping.

Fold in the chopped soft caramel candies for chewy texture in every bite.

Spread the coated cereal on the prepared baking sheet in a single layer. Let it cool and set for 30 minutes.

Once cooled, transfer to a serving bowl or airtight container for storage.