In a large bowl, beat peanut butter and butter until combined.
Slowly add in confectioners' sugar and beat until smooth; Stir in cereal.
Use a small cookie scoop to shape mixture into 1 inch balls.
Refrigerate for at least 30 minutes until chilled.
Line baking sheets with wax paper.
Meanwhile, place chocolate chips and 1/4 cup shortening in a microwave safe bowl and microwave on high for 15 second increments until melted; stir until smooth.
Dip balls into melted chocolate allowing excess to drip off.
Place on a waxed paper-lined pan. Let stand until set.