Short, clear answer:

• Traditionally for lay Jains (householders):

Yes, dairy (milk, curd, ghee, paneer, etc.) has been allowed if taken with care, in small quantity, freshly prepared, and ideally from a cow treated with compassion – because it does not involve direct killing like meat or eggs.

• For ascetics (sādhus, sādhvīs):

In practice, most Jain monks and nuns today avoid milk and dairy, aiming for the highest level of ahiṁsā (non‑violence).

• Modern situation:

Because today’s dairy industry usually involves a lot of cruelty (calf separation, slaughter, etc.), many Jains now say: - Dairy may be technically permitted for laypeople in śāstra, - But the more ahimsak, higher path is to reduce or completely avoid dairy and use plant-based options.

• Digambar & Śvetāmbara:

- Both historically allowed dairy for householders. - Both are becoming stricter where people are more aware of cruelty. - Exact rules can differ by guru, sangh, and specific vows (e.g. during Paryushan, Ayambil, Das Lakshan, many niyams exclude milk products).

Simple guidance:

• If you want to follow minimum requirement of traditional lay Jain dharma: carefully sourced dairy has been allowed.
• If you want to follow maximum ahiṁsā: move towards vegan or near‑vegan, avoiding dairy especially from commercial farms.

You can read more here about milk and dairy in Jainism: Is milk allowed as per śāstra? “Why can we have milk?” (Jain perspective)