You will need a donut pan for this recipe; you can also use a mini donut pan, but bear in mind that the recipe will probably leave you with around five or six dozen mini donuts. No, really.
Be sure to eat these donuts immediately after decorating with cereal — cereal goes soggy and stale fast, especially when it touches something liquidy like the glaze. These donuts won't keep well for more than 3 hours. If you must make in advance, make the cake donuts first and store them unglazed in an airtight container for up to 3 days. Glaze and top with cereal immediately before serving — the glaze should come together in less than 10 minutes. You can even have an interactive sort of breakfast where people can glaze and top their own donuts too!
(Cake and glaze recipe adapted from Sprinkle Bakes)