Preheat oven to 425°. In a large bowl, combine the flour, cereal, 2 tablespoons sugar, baking powder and salt; cut in shortening until mixture resembles coarse crumbs. Stir in milk just until moistened. Shape into 1-in. balls.
In a shallow bowl, combine remaining 1/2 cup sugar and cinnamon. Dip balls in melted butter, then roll in cinnamon-sugar mix.
Arrange balls in a single layer in an 8-in. cast-iron skillet or round baking pan. Bake until browned and a toothpick inserted in centers comes out clean, 15-18 minutes.