Researchers from University of Illinois at Chicago College of Dentistry stated that drinking milk after eating cereal was found to reduce plaque acid levels and may prevent damage to tooth enamel that leads to cavities. They claim that after eating the cereal, acid forms from the combination of starches and plaque. What milk does, is increase the pH levels, which reduce the amounts of acid that sits on teeth.
A pH below 7 is acidic; a pH greater than 7 is basic. Pure water has a pH close to 7. When one consumes the starchy foods, their pH levels decrease, which is know to be acidic. The milk increases the level closer to 7, which reduces the acid level, somewhat neutralizing it.
In comparison to fruit juices, milk was much more capable of reducing the acid that helped facilitate cavities.