Can you use milk to make cheese? Or do you just drink it?
It's listed under "cooking items" on UESP: http://www.uesp.net/wiki/Skyrim:Hearthfire_Items
It might be used for the bakery stuff (snowberry crostada, etc.). I'm not that far yet... still looking for the best plot of land.
I think it's awesome they added milk. I started a thread a while back on this: "Yeah, I'm a milk drinker. Got a problem with that? Here is my strong arm with strong bones filled with delicious calcium from milk crushing your skull with an axe, mead drinker".