No, it's not made from real puffins. This cereal is pretty tasty. I don't eat it with milk, though I'm sure that would be fine. I eat it dry as a snack. It's not very sweet, and only has 6 gr of sugar per serving to go along with 6 gr of fiber.
The website has a live puffin cam, and features "best of" for the times of the year when the puffins are either not active, or not around.
Barbara's supports research and has helped bring the Atlantic Puffin back from the brink of extinction.
I bought the 12 oz box on sale for $2.50, so it was a good deal, too.