No Cereal in the Bottle!
It used to be common practice to put cereal in baby bottles as a way to get them to sleep longer. First off, this doesn't work (I'll explain later). Secondly, it can actually be dangerous.
Because young baby's suck and swallow reflexes are immature they may cough while drinking. This isn't too big of a deal with breastmilk or formula because they're made for babies this age. Cereal, however can get into the lungs when they cough and cause serious pulmonary issues.
The other issue is disrupting a baby's natural ability to tell when they are full by how many ounces of liquid they take in. Adding cereal tricks them into taking in more calories then they're supposed to, which teaches them to overeat. Cereal is also empty calories compared to breast milk or formula, so the baby may actually get hungry again SOONER. So much for sleeping through the night!
Some studies have shown that this early disruption of our body's natural ability to sense when we've had enough led to the epidemic of obesity in the last generation.
So my advice is to give a hungry baby more formula/breast milk if they're still hungry. In a few weeks it could be a totally different game so be patient. Save the cereal for when they're old enough to eat it from a spoon.
I'm sticking to formula right now, and at 6 months we'll start introducing some homemade baby food :)
We never did commercial rice cereal. It's really easy to make at home and has way more nutritional value. Especially if you use brown rice. There's tons of iron in it and other good nutrients. Making it at home means that the nutrients aren't all cooked out in a factory somewhere.