1. Measure margarine and corn syrup into 3-quart saucepan. Cook over medium heat until margarine melts, stirring occasionally. Stir in pudding mix. Bring to full boil, stirring constantly. Continue cooking and stirring for 1 minute. Remove from heat.
2. Add KELLOGG'S CORN FLAKES cereal and peanuts to cooked pudding mixture, mixing thoroughly until evenly coated. Spread in thin layer on waxed paper or buttered baking sheet. Cool. Break into small pieces. Store in tightly covered container.