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PREHEAT oven to 375°F. Combine flour, 1 cup sugar and baking powder in large bowl. Mix 1 cup cereal and milk in medium bowl; let stand 3 min. Add egg, orange peel, orange juice and 2 Tbsp. oil; mix well. Add to flour mixture; stir just until moistened. (Batter will be lumpy.) Gently stir in cranberries.
CRUSH remaining 1 cup cereal; mix with remaining 1 Tbsp. sugar and 1 tsp. oil. Spoon batter evenly into 16 paper-lined medium muffin cups. Top with cereal mixture.
BAKE 22 min. or until muffins are golden brown and toothpick inserted in centers comes out clean. Cool in pan 5 min.; remove to wire rack. Serve warm or cooled.