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To toast the oatmeal, preheat oven to 350. Spread oatmeal on ungreased baking sheet and toast it until it is lightly browned, about 11 minutes, shaking once. Set aside to cool.
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In a medium bowl, combine the peanut butter and the nonfat dry milk. Stir in the toasted oatmeal and set aside.
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In a small saucepan over medium heat, melt the butter. Stir in the honey. Pour the butter mixture over the peanut butter mixture, and stir until well combined. Allow to cool slightly.
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Shape into about 40 logs, each about 2 1/2 inches long. Place the logs onto a wire rack or parchment lined baking sheet and set aside.
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Melt the chocolate chips, drizzle over peanut butter logs. Serve immediately or store covered in the refrigerator for up to one week.