Place rice cereal in a large heat-proof mixing bowl and set aside.

In a microwave-safe bowl, combine white chocolate chips and softened cream cheese.

Microwave in 30-second intervals, stirring between each, until the mixture is completely smooth.

Whisk the dry cherry gelatin powder into the melted chocolate mixture until well combined and pink.

Pour the cherry mixture over the cereal and gently fold with a spatula until every piece is evenly coated.

In a large gallon-sized plastic bag, combine the powdered sugar and graham cracker crumbs.

Transfer the coated cereal into the bag, seal, and shake vigorously until the cereal is fully dusted.

Spread the mixture onto a parchment-lined baking sheet and mix in the chopped dried cherries.

Allow to cool at room temperature for 30 minutes until the coating has set.