A shelf-stable concentrated dairy product, such as concentrated milk, with improved flavor, color and mouthfeel, and a method of production thereof is provided. The method eliminates any thermal treatment prior to and during concentration that may substantially cross-link casein to whey and preferably utilizes microfiltration to produce a stable concentrated dairy liquid with reduced amounts of whey and lactose. The resulting products have a sterilization value Fo of at least 5 and are also resistant to gelling and browning during high temperature sterilization and also resistant to gelling during extended storage.