I recommend using dry ice or gel packs in a milk storage cooler to keep everything at a cold temperature. For shorter travel days (8-10 hours), I have had no problem packing my milk with regular ice packs in a small cooler bag.
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1) Cold milk in a thermos or insulated bottleIf your trip is fairly short and you can keep regular milk somewhat cold in a thermos or bottle, this is probably your best bet. TSA agents are often able to screen the milk by itself easily just by opening and testing the container.
TSA officers may need to test the liquids for explosives or concealed prohibited items. Although not required, to expedite the screening process, it is recommended that formula and breast milk be transported in clear, translucent bottles and not plastic bags or pouches.
Be aware, however, that carrying shelf stable milk will sometimes result in enhanced security at the hands of TSA. Because TSA cannot open the sealed milk boxes (because they'd spoil), some agents insist on subjecting you to an enhanced pat-down.
Carry the sterilised bottles in a sterilised, lidded container. You can give your baby ready-made formula at room temperature, or you can warm the milk if your baby likes it like this. To do this, you could use a travel bottle warmer.
Water for babies is allowed in reasonable quantities in carry-on bags. Remove this item from your carry-on bag to be screened separately from the rest of your belongings.