Disclosed is a dairy composition comprising enzyme hydrolysed milk proteins, a buffer compound, and a sequestrant for calcium, wherein there is substantially no aggregation of the enzyme hydrolysed milk proteins, and wherein the sequestrant is added in an amount sufficient to prevent the enzyme hydrolysed proteins from coagulating. Also disclosed is a method of making a powdered dairy composition, the method comprising: adding a buffer compound to a milk composition, wherein the buffer compound gives the milk composition a pH of 5.5 or more; adding a sequestrant for calcium to the milk composition; adding a milk coagulating enzyme to the milk composition to form a treated milk; and forming the treated milk into the powdered dairy composition, wherein a concentration of free calcium ions in the treated milk is controlled by the sequestrant for calcium, and wherein the powdered dairy composition comprises substantially no aggregation of enzyme hydrolysed milk proteins due to the sequestrant’s reduction of calcium ion concentration in the treated milk.