I think I'm missing something . . . One half cup water is used in the first paragraph to dissolve the gelatin. The second paragraph calls for mixing the milk, drink mix, food coloring, salt and beating. There is no liquid other than the food coloring. The next step calls for using the "remaining water" (3/4 cups?) and processing it with the cottage cheese.
When is the milk powder recontituted and how much water is used?