In 2-quart saucepan, heat (steep) milk and cereal over low heat about 5 minutes or until cereal becomes soft and milk takes on a chocolaty color.
Place strainer over 2-cup measuring cup or medium bowl. Pour cereal-milk mixture through strainer to remove cereal from hot, cereal-infused milk; press cereal with back of spoon to get as much milk as possible. Discard cereal. Cool milk slightly.
Pour coffee into 4 mugs. Add about 1/2 cup infused milk (or more to taste) into each mug. Top each with whipped cream; sprinkle with additional cereal for garnish.