Yogurt making is shockingly easy: you heat the milk of your choice to just near boiling (~175-180F if you have a candy thermometer, I just look for bubbles on the edges). If you are using less than 2%, you'll want to add non-fat dry milk (~1/3-1/2 cup for every 6 cups of milk).
Then you let the temperature come back down to between 100-110F (it would feel like a hot tub to the touch) and mix in some live cultures, typically from other yogurt. I just add about 1/4 cup of my last batch of yogurt to the next, or buy a container of plain yogurt (Greek is best with more bacteria species!), or buy "yogurt starters" in a health food store.
Pour the yogurt into appropriate containers (I always used old, cleaned glass jars) and "incubate" in a warm place (100-110F) for 8-12 hours. I now have a yogurt maker that does the incubating for me, but before that, I put the jars in a cooler with jugs of very hot water around them and a towel around all the jars and left it overnight. The next morning, your yogurt is made and ready to go!
I also make mine strained (Greek-style) by straining it through coffee filters for 8-12 hours. Sweeter, thicker, and higher in protein.
Lots of people on the internet do this in various forms! My 1 gallon of milk costs me ~$2.50 and makes yogurt for about 3 weeks, which at small container a day would be $15 of yogurt.
I eat mine with fruit and natural peanut butter, but it's good with fruit and sweetener if you need that (like honey).
I'm a microbiologist, so I figured if I cultured bacteria at work so well, I ought to be able to do it at home!
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