Combine milk and cereal; set aside.
Combine flour, baking powder, and salt in a large mixing bowl; mix well. Cut in shortening with a pastry blender until mixture resembles coarse meal. Add reserved cereal mixture, stirring with a fork until dry ingredients are moistened.
Turn dough out onto a floured surface; shape into a ball.
Roll dough to 1/2-inch thickness; cut with a 1 3/4-inch biscuit cutter. Place biscuits on a greased baking sheet. Bake at 400° for 12 minutes or until biscuits are lightly browned. Serve warm with butter.