I only use powdered milk in cooking. A large box of powdered milk lasts a long time! Plus, it's low fat so its a bit healthier than the 2% milk I drink.

I use powdered milk to make homemade mixes and such, but it doesn't save me any money...gallon for gallon, it is no less expensive where I live than buying skim milk

I put non fat powdered milk in 2% milk and then make home made yogurt from it - it is rich and creamy and a great source of protien. When mixed with water and salt with a hand blender it makes fantastic drinking buttermilk. The creamy yogurt also makes a great base for diced cucumber and dill, and great with granola.

I paid $10 for a box of powdered milk at Aldi (the cheapest grocery store EVER!) that will make 5 gallons of milk. That saves about $1.10 a gallon here in the midwest. That is a savings of $2.20 a week at my house- hardly worth the effort. However, powdered milk is a great thing to have in your emergency pantry for those times when the power could possibly be off for an extended period. Everyone should have a small emergency food supply.

I have recently rediscovered powdered milk and after working through childhood issues caused by having to drink the stuff, unchilled, I used it to make some yogurt. It thickened well. I found a recipe to make instant cocoal mix (basically sugar, powdered milk, cocoa powder) and have used it over and over again adding cinnamon, nutmeg, chili powders to enhance and change the flavor of different batches. A tin of the stuff is a great holiday gift. I use instant milk to make rice or bread puddings, which  can require up to a gallon of milk. I use it in my bath - I know it's a luxury - but it softens the skin and is much more economical than a milk bath which costs more because of the pretty packaging. There are tons of uses for powdered milk and investing the time and energy into finding and experimenting with them has given me a new found respect for the stuff...

I can't figure out how any of you consider powdered milk to assist in saving you any money when it is a product that tastes bad most of the time. In the south, for home use, it is usually rancid or going so when you open the box. People use it to stretch a gallon of milk by adding it to store-bought gallons. Yes, the use of powdered milk to make yogurt is wide-spread. Although I question anyone using it for a milk bath. Sheese. But be wise when you buy it. Take it back if it has that rancid, shelf-stale quality when you use it. (and it will) Let the store know!  

Oh God no! I'd rather not drink milk than have the powdered stuff!  This cost cutting craze has gotten out of hand!

I don't drink a lot of milk, but I use a lot of it.  Given that, I make a quart of powdered milk a week.  I eat oatmeal for breakfast (way cheaper than cold cereal, and very quick to make), and use a cup of milk instead of water (it tastes better and gives me the calcium I need).  I also use it for baking and cooking.  It's actually quite convenient if you want to make a white sauce.

In our area, the powdered milk costs the same as liquid. So why do we feel we save money on it? Because when we were buying liquid we had to go to the grocery often. Now, we can buy meat (to freeze) and shelf stuff in bulk. Cutting down on store trips saves money in gas and impulse purchases. We go to the farmers market a couple times a week and the bread outlet too. Since those are our frequent trips, the impulse items aren't such a concern.

RE: Ashvin j sanghvi and the post he/she left; I'm of Armenian decent. What you've make is called "Tahn". Great when it's hot outside. Also the Indians add mango and frapee it in the blender and you have "mangolasse" also great in the heat. Kids love it!