Grind coffee into medium-fine grounds. Place coffee in large glass container. Stir in cold water. Cover and refrigerate 24 hours. Strain coffee through fine mesh strainer. Strain again through coffee filter; discard grounds.
Heat oven to 300°F. Line 15x10x1-inch pan with foil. Spread 3 cups cereal in pan. Bake 10 minutes; stir. Bake 5 minutes longer or until toasted. Cool 10 minutes. Add toasted cereal to large bowl. Add milk; stir. Refrigerate 30 minutes. Strain milk mixture through strainer; discard solids.
In 2-quart glass pitcher, stir together cold coffee and milk mixture. To serve, pour into glasses filled with ice; top with whipped cream, caramel sauce and crushed cereal.