The directions are long, because I'm trying to be thorough. But it's a cinch.
This is the process, in short:
Mix dry milk with liquid milk.
And here it is in detail:
1. Mix liquid (regular) milk with dry skim milk. I use 2 cups of instant dry skim milk to 2 quarts of liquid 1% milk: we like the yogurt to be *very* thick. I use a whisk to mix it very well.
(Or I use 1.5 cups of non-instant dry skim milk. I find that the non-instant milk makes slightly nicer yogurt, but the instant dry milk is fine too, and easier to find. I used to use it, until I found a fairly reasonable source of the non-instant: http://www.bulkfoods.com .
I regularly buy other foods from BulkFoods so I'm not incurring shipping charges just for the dry milk.)
You can use less dry skim milk if you use 2% or whole milk, and less if you want the yogurt not-so-thick. The higher the fat content of the milk, the less dry skim milk you need to thicken the yogurt.
2. Heat the mixture to about 180 F. I heat it in the microwave, in a 2-quart pyrex cup. If you heat milk in the microwave, you need to be very careful with it. It wants to foam up and bubble out of the Pyrex cup or bowl and spill all over the place.
I have found - by experimenting - that I can always heat the refrigerator-cold milk for 35 minutes at 50% power in my 1000 watt microwave. No problems then.
You can heat the milk on the stove, if you prefer. You need to be careful that it doesn't burn in that case. Use low heat, stir from time to time.
3. Let the milk cool down to about 110 F to 120 F. I have a candy thermometer and use it. You can buy these at kitchen supply stores. Or you can just drizzle a little bit on the inside of your wrist and it should just feel a little bit warm - the 'baby bottle' test.
(Why not just heat the milk to 110 F in the first place? I've tried this, and the yogurt's texture is not as good. )
4. Mix the starter with the milk - I use a whisk. The starter can be some plain yogurt you've purchased at a store (in this case, use at least 1/2 cup of plain yogurt). Or you can used dried yogurt starter purchased from a health food store or online. The next time, you'll use some of this batch for starter, etc. After 4 to 5 months, the yogurt will get too tart: then you start over with a new starter.
I buy my starter from the New England Cheesemaking Supply:
It's not expensive; each little packet lasts me 4-5 months. They sell 4 packets together for somewhere around $5.00 - that much lasts me more than a year, so it costs me about than $5/year for starter.
If you use dried starter, keep it in the freezer. Or you can just use plain yogurt from the store, as I said above. But I think the dried starter makes considerably better yogurt.
5. Now you need to keep the milk at that temperature (around 110 F) for about four to six hours. I have, like, and use a Yogourmet Yogurt Maker that keeps it warm. It makes two quarts (two liters, really) at a time.
But I wouldn't buy another one. When/if mine dies, I'll use this method of keeping it warm:
(Click on the photo to see it larger.)
This is actually better, because you can make up to four quarts of yogurt at a time and it doesn't use electricity - you just need to get the water warm at first.
UPDATE: I now use my "haybox cooker/picnic chest" to incubate the yogurt. See: http://www.meadows.pair.com/hayboxcooker.html. I put the yogurt container in my largest soup pot, filled the pot (not quite up to the top of the yogurt container) with warm water, put the cover on the pot and put it in the haybox cooker. I took it out four hours later - perfect creamy thick yogurt! So now I don't need to use electricity to incubate my yogurt.
I used the heavy plastic container which came with my Yogourmet yogurt maker. But two quart canning jars would work just as well.
There are also directions for making the yogurt on Professor Fankhauser's page which are slightly different from my directions. Note that he says to sterilize everything: I never do this, and I've never had a problem. I just make sure everything is good and clean.
6. Now your yogurt is ready - nice and thick. Take out enough to be the next batch's starter (I use about 1/2 to 3/4 cup - I don't measure it). Put the starter in a separate little jar with a cover, and refrigerate it separately. This keeps it cleaner and (more important) it prevents you from forgetting that you need some to be the next starter and eating it all up. Refrigerate your main container too.
Let it cool: serve however you like - I like mine with a glob of undiluted frozen orange juice, or with any fruit, fresh, canned, or frozen. Sometimes I make 'pie fillings' (very lightly sweetened) and those are the best thing of all for this purpose. Some people mix jam with their yogurt. Or fruit syrups you can buy in the supermarket. My husband likes chocolate syrup on it, or he mixes it with honey. I also regularly use yogurt mixed with homemade muesli and fruit for breakfast.
I use some in cooking too, and I always use yogurt when a recipe calls for 'sour cream'. And sometimes we make frozen yogurt from it.
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