Preheat oven to 350 degrees F.
Mix together guava jam with water. Set aside.
Whip together cream cheese, butter, and guava jam until smooth consistency. Fold in fresh strawberries. Spread evenly on 2 slices of bread and top with remaining slices.
Whisk together milk, egg, and cinnamon. Dredge the french toast in the egg batter, turning to coat. Remove from the egg batter and coat with the crushed cereal on both sides.
Preheat griddle or nonstick pan on medium-low heat. Add ½ tablespoon butter and melt. Carefully lay the coated french toast in the pan and cook until golden brown, about 3-4 minutes. Add the remaining butter, flip over and cook on the other side until golden brown. Finish cooking french toast in the oven until the center is warm, about 5 minutes.
Remove french toast from the oven. Drizzle with the guava sauce and serve.