I've made it with just Greek yogurt, vanilla and honey many times too (though used 2% or whole.) Really delicious and creamy, but best eaten soon after its made - left in freezer it gets very hard (can be softened again, but that original texture is best.)
No it won't have crystals but using full fat yogurt will give you a creamier result. If you drain the yogurt beforehand, that's even better. I made a really delicious frozen yogurt, layered with fruit purée that you could try out. You can skip the purée - even on its own this frozen yogurt is delicious: http://someneedfulthings.blogspot.com/2012/05/mango-cheesecake-ice-cream.html?m=1
Do you have an ice cream maker? Use Fage Greek yogurt. Fat free is actually fine for this. Put in as much sugar as you like, flavor it with a little vanilla, and get the machine running. That's all you need!
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