Extruded nutritional powders and methods of manufacturing the extruded nutritional powders, including extruded infant nutritional powders and extruded adult nutritional powders are provided. The processes utilize an extruder that is capable of internally mixing and emulsifying protein, and optionally, a carbohydrate with fat and water into an emulsion that can be dried into a powder having equivalent fat separation and dispersibility as compared to spray dried powders.
