Line a baking tray with wax paper and set aside. Pour the cereal into a large bowl. In a microwave-safe bowl, place the frosting and chocolate chips. Microwave at 70 percent power for 90 seconds and stir. Continue to microwave at 15 second intervals, if necessary, until the mixture is fully melted. Add vanilla and stir very well. Pour the mixture over the cereal and gently stir to coat.