PREHEAT oven to 350°F. Beat butter and 1 cup of the sugar in large bowl with electric mixer until light and fluffy. Blend in eggs and vanilla. Add flour, cereal and baking powder; mix well. Pour into lightly greased 13x9-inch baking pan.
BAKE 30 to 35 minutes or until toothpick inserted in center comes out clean. Meanwhile, mix remaining 1 cup sugar and water in small saucepan. Bring to boil on medium-high heat. Boil 5 minutes.
REMOVE cake from oven. Immediately pour hot sugar mixture over cake. Cool cake completely in pan on wire rack. Cut into 24 squares to serve.