The simple answer is yes. But you know we’re not going to stop there.
First, just to make sure we are on the same page, let's understand the food we are talking about. Powdered milk is typically low-fat milk with the water removed. That leaves the protein, lactose, and remaining fat. Low-fat powdered milk has a pretty long shelf-life, about a couple of months, and can be a handy stand-in for those times when the milk carton was put back into the refrigerator nearly empty, which you discovered when you were in the middle of baking a cake or muffins.
Here's how you can substitute powdered milk for liquid milk in your baked goods:
1.The easiest way to use powdered milk in a baked item that calls for whole or low-fat milk is to follow the powdered milk package's directions. Check your recipe for the amount of milk, and then check the package for the amount of powdered milk you need to meet the original milk amount. Measure that amount.
2. Instead of mixing the powder with water before adding it to your batter, mix the powder directly into the other dried ingredients called for in the recipe, like the flour and baking powder mixture.
3. Then, add the required amount of water (as suggested by the powdered milk package) in the recipe step where the liquid milk would have been added.
Honestly, unless you are an über-expert taster and professional baker, you will not notice the difference. Powdered milk can really save the day in an emergency!