A method for extraction and removal of cholesterol from untreated liquid egg yolk with simultaneous production of cholesterol as a by-product. The removal of cholesterol from the untreated liquid egg yolk is achieved by the extraction of cholesterol into a vegetable oil by ultra high pressure homogenization producing liquid egg yolk having reduced amount of cholesterol. The cholesterol extracted into the vegetable oil is further removed from the oil by steam stripping method, allowing a recycling of the steam stripped extraction oil. Cholesterol is recovered as the extraction by-product from the aqueous steam stripping distillate.
