I have cuttings in the baggie method develop white spots which look like white oat flakes stuck to the cuttings or these appear like white pieces in split milk (or tiny pieces of white cheese). Initials are usually roundish in shape but these spots are not round in shape. These bumps vary in sizes and cover almost the whole length. I also noticed that two cuttings of the same variety/vintage are progressing the same way showing these irregular white bumps. It has been three weeks and these bumps have not changed to initials or roots.

All other cuttings started the same time show normal roundish initials and then roots.

I am sure others might have observed similar happenings with their cuttings sometimes.

What should one expect with cuttings like these and what steps to follow.?

I was thinking of placing in Perlite-Vermiculite mix in a clear glass hoping that the vertical position in rooting media may stimulate initials and rooting (not that I have any hypothesis about this).

I think you should review Steve NJ log on his Rooting Experiment. I think that it is some form of mold or fungus.
http://www.websitetoolbox.com/tool/post/figs4funforum/vpost?id=3007893&trail=75

Ottawan,

I found this same phenomenon on my Bella Unknown cuttings in my experiment (see the link in Jazz's post). I've seen it here and there on some other varieties and not present at all on others. On the Bella's is was very extensive. It is not a mold or fungus. I think it is some sort of starchy excretion from the cuttings. It later starts to brown and becomes less frequent. I do not think it is an early stage of initials because I have not observed them "turning into initials". The real initials and roots have shown up in different locations then the starchy stuff. I have seen it show up as early as 1-2 days into the rooting process, then brown after a few days, then roots showing up later. I would not be too concerned by it. No one has offered an explanation of what it might be. Curious, what variety are you observing it on?