I will give my'unpasturized ' milk to my dog.

Yes, you can make paneer or cottage cheese. Here is how you can make it http://www.rakshaskitchen.com/2012/11/how-to-make-cottage-cheesepaneer-out-of-spoilt-milk.html

You can boil it for several minutes and it will curdle. Then you strain it in a metal strainer and thoroughly rinse it out so it doesn`t smell. You end up with the curds which can be eaten anyway you like. There are many recipes for curds or it can be eaten plain or with a sweetener. You get the goodness of the milk which would otherwise be thrown away or risk ruining some dish in an attempt to use it up without removing the bad part. I have done this many times without any problems whereas the unprocessed soured milk has given the usual temporary problem even if i drink it in coffee just before it actually goes bad. The only problem is you don't get that much curds from milk, maybe 1 1/2 cups per 1/2 gallon and oftentimes only the bottom of the container has gone bad. But at least you get some nutrition from your purchase. It doesn't completely go to waste.

My aunt swears by spoiled milk to use in her chocolate cake!!

Toss it. I've given myself food poisoning a couple of times from dicey dairy products. I don't mess around with them any longer. It's cheap compared to a couple of days crouching over and on the toilet.

Just how "Spoiled" is it. If it's just sour--not for drinking. It's great in breads, biscuits, and cornbread.

Susan G is right -nearly all of the milk we drink in the US is pasteurized (even *ultra*pasteurized). That means all the bad buggies are killed off, but any good bugs are too. So any natural souring (like in yogurt or creme fraiche) won't happen. When that milk spoils, it does so because "bad" bacteria get into it after it's been opened. The paneer that pauljoseph mentions can be made with sour milk, but milk that's truly gone bad (smells awful and vinegary) and tastes unpleasant will make a cheese that smells bad and tastes unpleasant.

I have read that, because of the way commercial milk is processed, you can't get a naturally sour milk. It becomes something foul and nasty. If you want to make simple cheese, yogurt, etc., start with fresh milk. If you think you will have milk on hand too long, it can be frozen.

you can make homemade indian cheese ( paneer) with curdle milk not spoiled milk how to make my own paneer cheese. It's incredibly easy, actually. All you need is milk and lime. Bring the milk almost to the boil then add the juice of one lime. Turn off the heat and stir. Then drain off the liquid with a muslin cloth and put something heavy on it for a few minutes. delicious cheese! http://www.food52.com/recipes/6883_homemade_indian_cheese_paneer

That said, provided the taste isn't super awful, you probably could use it in baking as a substitute for buttermilk or in bread doughs. Personally though, I can't ever get past the smell/

If your milk is truly spoiled - and you know that smell/taste instinctively - it's garbage. Spoiled milk is different that soured or cultured milk, which is milk that has been intentionally soured with a starter or friendly bacteria (like those found in yogurt).