What sort of milk powder are you using? Is it 'instant nonfat milk powder,' or just 'nonfat milk powder?' I've had good luck with the pancakes using bob red mill's nonfat dry milk powder, while the 'instant nonfat dry milk powder' I used initially turned into the sludge that you're describing. I even use a full 1/2 cup of milk with one cup BRM powderSecond or third time I've tried this and it just doesn't work. I end up with a bunch of unworkable sludge in the pan.