Using Dry Milk in Bread Recipes. Keeping dry milk powder in your pantry ensures that youll always have milk on hand for baking. When it comes to baking breads, dry milk powder can be used in place of the milk called for in the recipe. Milk to dry milk conversion 12 cup milk 2 Tbsp dry milk and 12 cup water. Tbsp dry milk and 23 cup water. Tbsp dry milk and 34 cup water. Tbsp dry milk and 1 13 cups water. Video A Loaf of Sally Lunn Bread, Pt. Martha Stewart prepares a loaf of Sally Lunn bread from a James Beard recipe.