A method for producing a shelf-stable protein-based pellet that is capable of expansion into a light, crispy snack cake, while providing a good source of protein and calcium. The method, in preferred embodiments, involves making dough from tapioca and potato starches and a milk protein derivative consisting of whey protein isolate, milk protein isolate or calcium caseinate. The mixture is extruded, sliced and dried in a series of dyers. The method produces a shelf-stable pellet having a moisture level of approximately 9-13% by weight which is further processed to produce a puffed dairy protein snack product, having a moisture level typically less than 2%.