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The main article can be found at Minecraft Wiki: Milk.
Milk is a liquid in vanilla Minecraft. It cannot be placed on the ground like water or lava, but it can be pumped through Fluid Pipes and Liquiducts. It is used by Forestry as fuel in Biogas Engines. It lasts the longest of all fuels, however it requires a constant supply of lava to keep the engine's temperature up and remain running. However, it's still a more efficient use of Lava than most other forms of lava power generation as it can be obtained from a Rancher at low prices, and a bucket of lava combined with milk in the Biogas Engine can make over twice as much energy as in a Thermal Generator(which being the most efficient lava generator of all)
A bucket of milk is an item obtained from Cows and Mooshrooms by right-clicking on them with an empty bucket. Despite milk being a liquid, it is not a fluid block in Minecraft. Its main use is curing poison and potion effects. It is also an ingredient in cake. You can milk a cow infinitely as long as you have enough buckets. Right clicking with a full bucket of milk will start the drinking animation. It doesn't fill up the hunger bar, but will immediately cure the Player of any status changes or cancel the effect of poison, Wither, and other potion effects. Since it cures poison, an ideal source of food would be rotten flesh followed by a bucket of milk, which will restore hunger and then cancel out the poison, respectively. This would only require a cow and an open space for zombies to spawn on at night. Because of its ability to cure status effects, it is a good idea to take it into an Abandoned Mine Shaft for curing the poison from Cave Spiders.