Mix sugar and corn syrup in a small pan and heat until hot and bubbling.
Remove sugar-syrup mixture from heat and stir in peanut butter.
Stir peanut butter mixture into cereal and chocolate chips. Mix together well. The chocolate chips will melt.
When cereal is completely coated, allow mixture to sit for 5 minutes to cool.
Using washed hands, pick up 2-3 tablespoons of mixture. Sprinkle 4-5 white chocolate pieces into the mixture in hand. Squeeze mixture in your fist until it looks just like and owl pellet. Smooth edges if necessary and place on a plate.