That is actually the way yogurt should be. The way we most are accustomed to commercial yogurt being thick like a jello/pudding is due to the pasteurization of the milk products. It changes the proteins in the milk and they often add thickening agents.
Or mix a batch with some instant pudding mixed in the next time you make it. Then the next time decrease the pudding and so on. Changing our way of eating can take a little time.
Ultra pasteurized will be marked on the label.
You won't waste milk if you follow the instructions and use live culture yogurt for your starter.
If your milk is straight from a dairy I highly doubt it is UP.
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Sune, ultra pasteurization gives milk a very long shelf life but everything in it is dead. The super heating changes the protein molecules and you can't do anything with it. You can't make yogurt, kefir, cheese, etc. Your new milk should work beautifully.
It should be fine. You can let it go 24 - 36 hours if you want it closer to sour cream.
Creme Fraishe is milk left to sour on the counter top 24 hours.
When milk 'goes bad' it is not 'bad' you can still make cheese with it or bake bread.
We have to relearn the true nature of milk and what can...
I think you need to go back and read the initial recipe and follow the steps exactly. I have never had yogurt be ready in 3 hours. Once the yogurt cultures have incubated 6 - 10 hours set the jars in the fridge for several hours to chill through completely.
Homemade yogurt will taste a little...