Powdered milk is milk that been processed to remove the water content. Powdered milk is convenient as it can be stored un-refrigerated until it is mixed with water for use in cooking, baking or drinking. It has a different flavor than fresh milk, but the difference is not noticeable in baked or prepared foods and powdered milk provides a good option when fresh milk is unavailable.

Powdered milk made from whole milk is whole milk with the water extracted. According to the United States Department of Agriculture (USDA), whole milk must have at least 3.25 percent milk fat and meet minimum levels of fat requirements that vary by state. Powdered milk made from whole milk is used by both baby formula manufacturers and in commercial candy factories.

Low fat milk is classified by the USDA as having a fat content of between 0.5 and 2 percent. Skim milk has a milk fat content of less than 0.5 percent. Low fat milk is not commonly available as powdered milk, but skim milk is. The USDA notes that a glass of fresh skim milk can be made richer in both taste and nutrients with a teaspoon of skim powdered milk added.

Powdered milk keeps well for months if it is well-sealed and stored in a cool, dry area. The milk powder itself does not need refrigeration, but when mixed with water it needs refrigeration the same as fresh milk. Since the flavor of the milk made with powdered milk tastes different from fresh milk when drinking, be sure to mix well with no lumps of powder remaining and chill well before drinking. Chocolate syrup can be added to make chocolate milk.

You should note that there are different grades of powdered milk as both nutrition quality and flavor can vary depending on the grade. For example, some powdered milks have extra amounts of Vitamin D and Vitamin A added. The "US Extra Grade" on a powdered milk product means that the product is made to dissolve instantly when added to water and is prepared to have a sweet, pleasant taste.