Preheat oven to 300°F (149°C) degrees. Line one large baking sheet with parchment paper or a silicone baking mat.

In a large heat-proof bowl, microwave the coconut oil and honey together for about 30 seconds. Alternatively, you may melt these ingredients together in a small pan on the stovetop. Remove from the microwave and using a fork or silicone spatula, stir until they are melted together and smooth. You may need to microwave it for 10 more seconds or so. Stir in the peanut butter and vanilla until smooth. Add the oats, peanuts, and cinnamon. Toss the mixture to coat everything. Make sure all of the oats are moistened.

Spread onto the prepared baking sheet (it usually always fits onto just one—if too crowded, use two baking sheets and bake at the same time on different racks) and bake for 35 minutes, stirring every 10 minutes or so. Remove from the oven and allow the granola to cool for 10 minutes, then sprinkle the peanut butter chips and M&Ms on top. Stir everything together gently on the baking sheet. Allow to cool completely before enjoying.