Abstract: A method for preparing a sugar coated R-T-E cereal product. The method comprises the steps of applying a high moisture sugar slurry to a wet cereal base to form a slurry coated wet cereal base and thereafter toasting the slurry coated wet cereal base under conditions of, for at least a portion of the drying step, elevated temperature (>250.degree. F., 121.degree. C.), e.g., toasting to form the sugar coated R-T-E cereal. By applying the diluted slurry to the wet cereal base and then toasting, the conventional final slurry drying step is eliminated. Also, the sugar coated cereal exhibits superior flavor and crispness in milk resulting from the formation of a "crust" layer in the R-T-E cereal piece. The R-T-E cereal exhibits improved shelf life compared to an uncoated R-T-E cereal.