Pour the Chex cereal into a large bowl. Set aside.
In a medium microwavable bowl, melt the chocolate chips. Heat for 1 minute then stir. Heat for an additional 30 seconds and stir again. Continue with additional 30 seconds until completely melted and chocolate is smooth. Stir in the coconut extract. Pour the chocolate over the Chex cereal. Gently stir until cereal is well coated. Stir in the shredded coconut until the cereal is evenly coated.
Pour the cereal onto two large baking sheets. Sprinkle cereal with powdered sugar until well coated. Let the Chocolate Coconut Chex Mix sit until chocolate is dry, about 15 minutes. Serve and enjoy!
Note-you can store the Chocolate Coconut Chex Mix in an air tight container for 3-4 days. It never lasts long in our house:)