Hey...
5 years ago (or so) I went off dairy, cold turkey. That move quickly cured my allergies completely, as well as my skin became a little more clear (it wasn't bad before). After a few weeks I added back the butter (mostly organic) and kept on that track for several years. The butter is mostly just fat, and a beneficial fat in my opinion.
I would probably take some raw dairy products if I could get them. I can get raw cheeses sometimes, that's about it right now. I do eat some regular dairy occasionally, just because I like cheese and sour cream.
As far as the cereal goes.... a milk substitute (almond, rice or sesame) should do. I am not a big cereal person, but on occasion (such as vacation) I will eat it with cold water poured on it. It doesn't bother me one bit, it accomplishes my goal of wet cereal, but it grosses some people out. I never liked milk so I didn't miss it one bit!