Looks really good Mike. I like mine better for sammies then the store bought stuff. Going to make another another batch but with whole milk instead of powered milk
How much regular milk will you use as a substitute for the dry?
Im thinking one cup then see how the texture is then add if need be. Wonder if half and half would help with texture
I am real curious on this one too Tommy. Because if you look at all the different conversion tables 3 tablespoons of dry milk = 1 cup of milk. This recipe calls for 6 tablespoons. I can't see using 2 cups of whole milk which would convert to the 6 tablespoons of dry. I am also curious why this recipe worked with the 6 tablespoons of dry and 1 cup of water. Too confusing for this old brain. 
The raw conversions don't matter for this recipe (e.g. 3 TBS dry = 1 cup milk). By doubling the amount of dry milk, you are doubling the concentrations of milk proteins, etc., but not the fat in the final product.
Substituting a cup of Half & Half (which is half milk and half cream), or 1/2 cup milk + 1/2 cup cream, would increase the fat. That in turn SHOULD make the texture smoother as well as make it more melty.
Before I went that rout, I'd try simply substituting a cup of whole milk which would also increase the fat, but not to the extreme as adding cream.
I want to try this recipe myself and have to avoid the dry milk, so I plan to use 1 cup of whole-fat lactose-free milk.
One potential problem I see with the as written recipe is this: After pouring the boiling water into the blender with the gelatin and dry milk, it says to "
pulse to combine." From what I know of powdered gelatin, it needs a more than a pulse to get it completely dissolved. I'd pulse it a few times, let it sit for a minute, then give it a good whir before adding the cheese. That should also help with the texture.
