Hi there. My five month old daughter was going through the same thing. When we took her for her four month shots, her pediatrician (He is wonderful) said that I should start her on rice cereal. I did not want to start until six months, but I trust him and thought "okay, just a little." I was giving her only a small amount in the mornings for about two weeks. I thought she was having a reaction (turns out it's just baby eczema) and wanted to stop. But I continued with the dr. saying it was okay. I was doing so until I had her back at the dr.'s due to a cold. The dr. I saw that day (there are seven different dr.'s at this office and my ped. was not available) told me to stop the cereal and wait until she turned five or six months.
Talk about confusion. At one point I felt bad for even giving her cereal, but I really trust her pediatrician. My point - I stopped giving her the cereal and noticed a drastic change in her sleeping. I know that there are different opinions on whether or not cereals or other solids help babies sleep better. But once I stopped, my daughter stopped sleeping through the night (it very much could have been her cold that was waking her ). I don't know what to tell you except what people have told me---she needs more calories during theday. I breastfeed only, and can understand about the distractions. I started dream feeding too. I tried giving her some rice cereal the other day and she slept through till 7:00am!!! However, all babies are different. Maybe I'm mentally thinking it's the cereal that's giving her those extra calories. Good Luck.