Melt butter in the microwave.

Stir in sugar and heavy cream (or water) and microwave on high for 30 seconds, until it can be stirred smooth. Stir in vanilla extract and orange oil.

Pour the mixture over the cereal and stir to coat. Microwave on high for 4 minutes, stirring every minute.

Add powdered sugar and stir to coat. Spread on a foil-lined baking sheet.

Melt white chocolate chips in the microwave, spoon into a plastic sandwich bag, snip the corner and drizzle over the muddy buddies. Repeat with the orange candy melts.