1 meg is 1000 kilo, which is 1000 1000 bytes or 1000000 bits, therefore the difference is 1,000,000 bytes that can be stored
.... unless you use the digital definition of a thousand which is 1024.
But we are talking of a CPU's SRAM cache, and the way the gates are arranged, they will always be MiB not MB
Therefore, it will be 1,024 KiB, or 1,048,576 Bytes, 8,388,608 bits
In fact, although you would know this better than me, there may be more cells to add some redundancy in case of die faults, although you'll only ever access 2MiB on a Cedar Mill.