Combine the chocolate chips, peanut butter, butter and malted milk in a medium microwave-safe bowl. Microwave in 30 second increments, stirring in between, until smooth. Put the cereal in a large bowl, pour in the melted chocolate-peanut butter and stir until evenly coated.
Allow the cereal to cool slightly, and then tranfer to a large brown paper bag or resealable plastic bag. Add the confectioners' sugar, bananas and butterscotch chips. Tightly close or seal the bag and toss to coat well. Store in an airtight container for up to 3 days.
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