I don't get the cereal part of this joke.
It's a running joke that students are often quite frugal and unable to take care of themselves - either because they have very little money to begin with, or they prioritise their money for alcohol, recreation etc. They are often jokingly depicted as being messy and somewhat unable to take care of themselves, due to moving out of home for the first time, and having to take care of themselves.
For example, college students are commonly depicted as living off ramen noodles, or living in squalor of sorts, often eating and drinking out of the first container that comes to hand, rather than wash dishes and tidy up.
The tweet you quoted combines both of these elements - the original joke refers to the first image - a cooking show in a student's apartment, where the chefs find they only have instant noodles to work with. The second joke refers to the second element, where the chefs find they have one saucepan to cook with, but somebody is eating cereal out of it rather than wash dishes to use.