Heat oven to 350 F. Using a food processor, grind the Honey Bunches of Oats Chocolate cereal into a fine powder. (Note: 1–3/4 cup cereal yields 1/2 cup ground cereal.)
In a large bowl, combine ground cereal, sugar, peanut butter and egg. Once all the ingredients are thoroughly incorporated, fold in mini chocolate chips.
Scoop about 2 Tablespoons of cookie dough and drop onto a parchment lined cookie sheet, placing each cookie about 2 inches apart. Bake for 13-15 minutes. Cool on a wire rack.