D.
If your baby is taking the cereal great, then she must be ready...don't sweat all the urgent (sometimes critical) warnings to only give breast milk. While it is true that breast milk/formula alone could sustain a baby for the first year, every baby IS different and you have to listen to your baby (so to speak).
That being said, I tried my baby on rice cereal (1/2 T)around four months hoping she would have a fuller tummy to sleep better during the night...actually, my husband insisted we try. The tiny bit of cereal actually made her tummy uncomfortable, so I stopped after that first day and waited until she was salivating over/trying to grab everything we were all putting in our mouths. That was around 6 months and she took it without one bit being spit back out and slept from 8pm until 8am. She was ready and her tummy was too. It's funny, because my son was ready at 4 months and my other daughter too. But again, every baby is different.
At this point---7 months old---she is still just on baby food pears and rice cereal. The apples gassed her up and carrots were just a mess if she spit up. Since she does not need the baby food for nutrition, I am not worrying about the variety this time around (it can be such a hassle dragging babyfood jars with you everywhere you go)...and I really only give her the pears to help move the rice cereal through her. I give her some of the food we eat if it is a whole (unprocessed) food like watermelon, plums, potatoes, green beans, etc. If she tries to grab our food, I mash them up and she loves them. She only has her cereal/pears at her lunch, dinner and bedtime feedings...and it is only about 1T of cereal mixed with formula from her bottle and 1T pears.
I DO stay away from wheat, dairy (ie yogurt)and other high-allergenic foods and will for as long as possible. And I obviously won't give her milk or eggs until she is a year (and no nuts until after 2 years). I have no food allergies with my other two and am really hoping she is the same way.
Hope this info helps.Just remember to take her cues with everything...even the fun potty-training in her future :)
Good luck and enjoy!