In a large microwave safe bowl, combine white chocolate, cashew butter and butter. Heat 1 minute, stir. Microwave 30 seconds more, or until ingredients are melted and smooth.
Divide white chocolate evenly into two bowls. Pour the blue dye into one bowl and the yellow dye into the other bowl. Mix each thoroughly to combine.
Divide cereal evenly between two large bowls. Pour the blue mixture into one bowl of cereal and the yellow mixture into the other. Use two rubber spatulas to toss the cereal with the melted chocolate to evenly combine.
Divide the frosting mix between the two bowls and gently combine until the frosting mix is evenly distributed throughout the cereal. Sprinkle one teaspoon of room temperature water over each bowl and stir each color of cereal once more.
Combine each color of cereal and remaining ingredients in a large bowl. Gently stir the mixture then enjoy!