The most common and most likely answer to this crossword clue is the 7 letter word FURMETY
F
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M
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Y
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The straight part
We know that "Cereal dish" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case cereal dish = furmety.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FURMETY mean?
FURMETY noun- A porridge made by boiling hulled wheat, typically with additional ingredients such as milk, egg yolks, and/or almond milk, traditionally served with venison or porpoise.