Preheat oven to 350°F. Spray a 24-count mini muffin pan with nonstick cooking spray or grease well with olive oil and a paper towel.
Grind cereal in a food processor or blender until smooth.
In a large bowl, combine cereal, flour, sugar, salt, baking powder and baking soda. Mix well.
Add the egg, milk, oil, and vanilla. Whisk the batter until smooth and free of lumps.
In a small bowl, mix together cream cheese and powdered sugar until well blended.
Spoon a small amount of dough into each muffin cup (just enough to cover the bottom and no more than 1/4 full) and gently tap pan against a flat surface to flatten dough.
Form cream cheese mixture into small balls (about the size of a marble) and drop one in each muffin cup.
Top cream cheese balls with just enough dough to cover them (no more than 3/4 full).
Bake at 350°F for 10-12 minutes or until golden brown.