1. Spread your popcorn out on a sheet of wax paper, discarding any unpopped kernels. Sprinkle cereal evenly over the popcorn. Have another sheet of wax paper ready to set the balls on.
  2. In a small saucepan, combine the honey and sugar over medium heat, until the mixture looks sort of foamy. Add the peanut butter, and let it melt, then immediately pour the mixture over the popcorn, pouring it in zig zags for even coverage.
  3. Let the peanut butter mixture cool for 10 seconds or so, then very carefully (it will be hot!), form into 3″ balls with your hands (or two spoons if you are concerned about how hot the mixture will be). Do not let small children handle this mixture.
  4. Let cool for 3-5 minutes, then eat within a day or two. Store in an airtight container.