Discloses a method of manufacturing a lactose-free or lactose reduced milk characterised by the steps of a) fermenting a milk including lactose with a fungi which produces the enzyme lactase and therefore is able to digest lactose, wherein the fungi is selected from the group consisting of Aspergillus Oryzae, Aspergillus sojae, Aspergillus niger, Rhizopus oryzae, Kluyveromyces lactis, Kluyveromyces fragilis and combinations thereof o digest an amount of lactose in the milk b) substantially separating the milk from the fungi.
