If it calls for water just use real milk if you like the creaminess milk adds. Milk rarely changes the cooking properties of something unless it has to thicken.
There are several kinds of milk powder somebeing very processed and some being minamully processed or "just dried" and all or most of the nutrients are retained. I wish I could remember the real names for each, but alas. . . Someone at your local health food place or co-op could tell you I am sure.
The truest answer to violence is love. The truest answer to death is life. The only prevention for violence is for the heart to have no violence within it. We cannot prevent evil through any system devised by mankind. But we can grapple with evil and defeat it, but only with love—real love.
The only two kinds of dry milk powder that I know of are instant and non-instant. I'm not sure of the physical difference, but non-instant is better (less processed). You can find instant in any grocery store (Carnation, etc), but you need to look in health food/whole food stores to find the non-instant kind.