//*******************WORKS*************************
$("#dropdownlist").kendoDropDownList({
cascade: alert("works")
});
//*******************DOES NOT WORK**************
$("#dropdownlist").kendoDropDownList({
cascade: function(){
alert("Does not work");
},
});
I also made a working demostration of the problem in JSFiddle
http://jsfiddle.net/2Spwh/2/