Cheese containing substantially all the casein and whey protein present in milk is prepared by concentrating milk, increasing ionic strength of the concentrated milk, fermenting the concentrate with a lactic acid-producing bacteria and evaporating water from the fermented concentrate. By increasing the ionic strength, coagulation is prevented during fermentation to produce a liquid fermented concentrate that can be efficiently evaporated. Preferably, milk is concentrated by ultrafiltration and diafiltration to produce a retentate having a concentration ratio of about 3:1 to 6:1, ionic strength of the retentate is increased by adding sodium chloride in an amount of about 0.5 to 1.5%, the retentate is fermented to a pH of about 4.9 to 5.5 and the fermented retentate is continuously evaporated at below atmospheric pressure.