There's most definitely a character breakfast. We went in June. Priority Seating is a requirement as they were completely booked and walk-ups were being offered PS for other days.
The food is wonderful. To start you get a plate of bread - I don't even know how to describe it. It's Hawaiian bread with a pineapple flavor....YUM! Then they take your drink order and bring out a bowl of food. It's served family-style so the bowl contains scrambled eggs, Mickey waffles, potatoes, bacon, sausage, and biscuits. I'm sure they could accomodate a special diet if you asked for it.
Not only did the characters visit each table but they also called the kids up for a conga line that wound around the whole restaurant. My 6-year-old loved it. It was good food and quick service.
I would recommend doing it on an MK day as the Monorail to MK is accessible from the same level as the restaurant. Call as soon as you can to make your PS. I will definitely do this character breakfast again!