Systems and methods according to the present invention yield milk products having reduced cholesterol. A method according to the present invention includes the steps of adding an edible oil to skim that was separated from whole milk; standardizing the particle size of the skim-and-oil mixture; combining the skim-and-oil mixture with homogenized cream that was separated from whole milk; and separating the oil from the reduced cholesterol cream and skim. A method according to the present invention may further include the steps of separating the reduced cholesterol cream and skim and then recombining them to form a reduced cholesterol milk product having desired properties.