The street vendors where I used to live had a variety of cereals, both puffed and uncooked. They didn’t tend to use this method; they had a big cauldron that rotated like one of those small cement mixers, and would often have flavorings mixed in (popcorn was usually chocolate or plain). I’d often buy plain puffed wheat, as it cost about 20-30 cents for a large bag and western cereals would often be upwards of $4 for a small packet. It also didn’t have a lot of oil or flavorings, so there was less risk from gutter oil.
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