Dissolve yeast and 1 teaspoon sugar in 1/3 cup warm water; stir well, and let stand 5 minutes.
Combine remaining sugar and warm water, shortening, and salt in a large mixing bowl; stir until shortening melts. Stir in yeast mixture, cereal, and enough flour to make a soft dough.
Turn dough out onto a lightly floured surface, and knead 10 minutes or until smooth and elastic. Place dough in a greased bowl, turning to grease top. Cover and let rise in a warm place (85°), free from drafts, 1 hour or until doubled in bulk. Punch dough down; cover and repeat rising procedure 1 hour or until doubled in bulk.
Turn dough out onto a lightly floured surface. Divide dough in half; cover and let rest 10 minutes. Shape into loaves and place in 2 greased 7 1/2- x 3- x 2- inch loaf pans. Cover and repeat rising procedure 1 hour or until doubled in bulk. Bake at 350° for 55 minutes or until loaves sound hollow when tapped. Remove bread from pans, and bake an additional 3 minutes to crisp bottoms of loaves. Cool on wire racks.