I find that powdered milk is fine for cooking, but doesn't taste nearly the same for drinking straight or with cereal, but that may be more of a personal preference issue.
Milk does freeze well, but as you point out, you need to have the freezer space. I'm a firm believer in having a large freezer. Although it costs money upfront, it can save you so much over time by allowing you to buy and cook in bulk. I think you can make up the cost in a reasonable period of time through what you save on groceries.
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Steve
* Despite the high cost of living, it remains very popular.
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