Cook corn syrup and sugar together in a large saucepan over medium heat, stirring to dissolve sugar. Bring mixture to a boil. Remove from heat. Stir in peanut butter; mix well. Add cereal; stir until evenly coated.
Pour into greased 13 x 9-inch pan and pat into place. Cool at least 45 minutes, or until firm. Cut into squares.
Melt white chocolate chips in saucepan over low heat, stirring constantly. Dip the top of each square into the white chocolate. Let harden or put into refrigerator for 15 minutes.
Mix powdered sugar, water, and food coloring in a small bowl. Scoop into a resealable bag and cut a small hole out of the corner with scissors. Pipe the “ribbon” and “bow” onto the scotcheroo.
Recipe Tip: Purchased decorator icings work great, too.