THE SOURCE
http://www.accentdesign.com/lowcarb/yogurt.html

A recipe/NOT MINE - MINE IS BELOW - easier

1: Bring one quart (or liter)milk to the simmer stage and remove from heat. Stir often to prevent scorching and sticking to the bottom of the pan.
2: Cover and cool until it has reached room temperatire or below(may be placed in refrigerator to hasten cooling). It is very important thatyou allow the temperature to drop sufficiently or you will kill the bacterial culture you are now ready to introduce.
3:Remove about one-half cup cooled milk and make a paste with one quarter cup of a good quality commecial yoghurt. The commercial yoghurt you use should be unflavored and unsweetened. Buy one that contains only milk and or milk solids and bacterial culture.
4: Mix the paste with the ramainder of the cooled milk and stir thoroughly.
5: Pour milk into any appropriate sized conainer, cover, and let stand FOR AT LEAST 24 HOURS at 100-110 F (38-43 C). If you forget to remove it after 24 hours, and the fermentation goes on longer all the better. Under no circumstances should the fermentation time be decreased to less than 24 hours. The source of heat used during the 24-hour fermentation is critical. It is very important to get the temperature correct at 100-110 F. before you proceed with the fermentation. Too high a temperature will kill the bacterial culture and will prevent the proper "digestion" of the lactose. Too low a temp. will prevent activation of bacterial enzymes and will result in incomplete digestion of the lactose. What I do is use a 60-watt lightbulb in my oven and prop the door open with a pencil to achieve the correct temp. Check with thermometer to make sure you have the right temp. This youghurt will not be as thick as commercial yoghurt,it will be a true youghurt since virtually all of the lactose has been digested by the bacterial culture and further lactose digestion will mot be required by intestinal cells.
-------------------------------------------------------------
MY SIMPLE RECIPE

Pour 1 quart goatmilk or any whole milk into a pot on range - add 1/2 cup nonfat milk powder and stir.
Bring to a simmer/boil (180 degrees or higher) or just boil it. Stir while heating.
Remove from heat/cool to room temperature or below (I put it in the fridge or even freezer for a quicker cooldown/right in the same pot.
When cool, mix in a sterilized/really CLEAN pyrex or glass bowl big enough to hold all the milk mix only 1/4 cup FRESH WHOLE PLAIN commercial yogurt and 1 cup of your cooled milk.
When blended, stir in the rest of the cooled milk.
I cover with a glass lid and put this in my food dehydrator for over 24 hours at 115 degrees.

DO NOT STIR, TASTE OR DISTURB WHILE INCUBATING!

Perfect yogurt. Very sour - no carbs/or very very little. For runnier yogurt use less milk powder or omit it entirely for a cream consistency. For a much cheesier consistency increase milk powder up to 1 cup.
-------------------------
After you make this yogurt, you can line a strainer with cheesecloth or coffee filters, and place over a pot. Pour the yogurt onto the cloth or filters and let drain into pot over night or more. Ta Da - you just made very low carb yogurt CHEESE!

Flavor these recipes with ANYTHING you like! Add splenda and its a wonderful dessert or "sweet" cream cheese!

Enjoy.