A method of manufacturing condensed milk having a milk solids component of 32% to 40% by weight comprises the steps of mixing liquid milk having 10% to 14% milk solids and a first predetermined milk fat content with dried milk powder having a second predetermined milk fat content, in appropriate amounts so that the total weight percentage of milk solids in the mixture, from the liquid milk and from the dried milk powder, is 32% to 40% by weight of the mixture. Then, the mixture is permitted to stand for at least 30 minutes; after which it is pasteurized and recovered for further packaging and handling. Typically, the storage, mixing, and standing steps are carried out at temperatures of 2.degree. C. to 25.degree. C., and preferably below 10.degree. C.

 
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