Both are correct but the first is less natural.
In #1, "eating his snacks" is a noun clause that is the direct object of the verb "sneaked". This is correct usage. One of the recognized meanings of the verb "to sneak" is "to convey in a stealthy way". For example, you can say
"I sneaked a look at the performance" (in which "a look" is the thing conveyed)
"I sneaked dancing the cha-cha into my schedule for the evening". (in which "dancing the cha-cha" is the thing that is conveyed into my schedule.
So #1 is a correct and meaningful sentence, but many people will have trouble understanding it. One problem with the sentence is that it puts the most essential fact into a noun, "eating". It is better to put the force of your sentence into a verb than a noun:
"I sneakily ate his snacks".