Milk Bucket

Milk is found in Alpha and Beta mode. It is obtained from cows by using (i.e., right-clicking) a bucket on a cow.

A bucket of milk however currently serves no purpose, although it is speculated to be a food in a future update. Once milk is in a bucket the only way to remove it from the bucket is to dump the contents on to the ground. When dumped, Milk will not act as Water, but rather disappear. Every cow can be milked multiple times. Notch confirmed that if he wins the IndieDB "Indie Game of the Year" award he will add cake to the game, milk possibly being one of the ingredients along with the egg item.

UPDATE:

On January 10th, 2011, Notch said in his 'World of Notch' blog that he has created the update of cake. In order to make cake, it requires three buckets of milk, three wheat items, and three sugar cane's (the new name for reeds).

The update will go into effect on Thursday, January 13th, 2011.

It is also unknown the effects or use of cake, though speculation says that it will most likely be for fun, possibly supplying units of health.