Butter large piece of waxed paper.
Heat butter in 3 quart saucepan until melted. Add marshmallows, stirring constantly until melted and mixture is smooth. Stir in vanilla.
Remove from heat. Quickly fold in cereal until evenly coated.
Press mixture about 3/4" thick on buttered waxed paper. Let cool.
Cut into desired shapes using 2 1/2- 3" buttered Christmas cookie cutters. Makes about 12 cookies. Enjoy!