In a 13" x 9" nonstick pan, combine cereal, pretzels, peanuts and crackers.
In a small saucepan, combine butter, brown sugar, cayenne and chili powder. Cook and stir over medium heat until sugar dissolves. Drizzle over cereal mixture. Stir until evenly coated.
Bake mixture at 350 degrees for 20 minutes, stirring every 5 minutes.
Place bacon on a paper towel lined plate. Sprinkle with pepper and press the pepper into the bacon. Cover with another paper towel and microwave until crisp. Cut the bacon with kitchen scissors into small pieces. Add into the cereal mixture. Stir and cool completely. Store in an airtight container in the refrigerator for up to 3 days.