An energy efficient system and method for pasteurizing milk for cultured dairy products reduces the energy required to pasteurize milk for cultured dairy products. A preheating module preheats raw milk. A waste heat control system harnesses medium temperature waste heat from waste heat source modules to release heat to the preheating module for preheating the raw milk. The preheating reduces the amount of heat required to heat the milk to higher pasteurization temperatures in a subsequent regeneration module and heating module. The regeneration module enables between outgoing high temperature pasteurized milk and incoming preheated milk heat, allowing the pasteurized milk to cool down to a culture temperature of about 108° Fahrenheit for culturing dairy products. The preheating temperature control and the controlled transfer of heat eliminate the need for reheating the cooled pasteurized milk. A homogenizer, cream separator, and degasser can integrate into the system for purifying the milk.