I personally have never had a problem using and rotating my dried milk (without feeding it to the pets). It does have a shorter shelf life than other long-term-storage items, but with mindfulness, it can be done. Most of my dried milk use comes with cooking.
When a recipe calls for a cup of milk, I add 1 c of water and 1/4 c dried milk for a 2% milk ratio, or 1/3 c dried milk for a whole milk ratio.
If a recipe calls for evaporated milk, use 1 1/4 c. water and 1 c dried milk to equal a 20 oz can.
Make your own sweetened condensed milk using this recipe:
1 c dry milk
2 c sugar
1/2 c boiling water
1/4 c butter-melted
Place all ingredients in a blender and blend on high for 1 full minute. Place in clean jar, cover and refrigerate overnight. Give it a good stir just before use. This is equal to the size of a store-bought can.
A fun Powdered Milk recipe is:
Hot Cocoa Mix
4 c powdered milk (I recommend instant)
21.8 oz box Nestle Nesquik
16 oz instant coffee creamer
1 c powdered sugar
Add all the ingredients to a big bowl and MIX WELL. Pour into a storage jar or canister. To make your Hot Cocoa, add 3-4 heaping tablespoons to 8 oz hot fresh milk or water. Stir and enjoy!
Even a quick google search of how to use powdered milk comes up with so many options. You can make your own Bisquick mix, cream of_____ soup, smoothies, the list is endless.
I challenge you to get some dried milk and learn to use it! It is an essential part of your food storage and you will need to rotate it.
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