Jess posted the reminder before my post was done, so I'll add in the disclaimer that I'm not a medical professional BUT we've gone thru a LOT of twists and turns to find food that works for us as a family and keeps us healthy, and so far here is where we are:
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I'm going against the grain on this one. We not only use full-fat milk (we can't digest pasteurized cows' milk but CAN digest yogurt, so I use it to make our own yogurt), but we also use real honest-to-goodness butter and plenty of it. Vitamins A and D, which milk is often fortified with, are fat-soluble. (I won't tell you how many eggs we eat, and when we have chicken, it's pretty much dark meat only.
Frankly, there is also increasing evidence that just because a fat is saturated does NOT make it automatically "bad." Artificially saturated trans-fats HAVE been shown to cause any number of ailments, but naturally saturated fats like milk fat/butter, and tropical oils (we also cook with coconut oil a LOT!) haven't been found to be the culprits for most of the things saturated fats are blamed for, unless consumed in excess - and
nothing should be consumed in excess!
In addition, it's not just babies and young children who benefit from good fats in the diet. Cholesterol is vital for nerve development and function, not just for little but for bigger kids too.
A link for ya:
http://www.care2.com/greenliving/why-whole-milk-is-the-healthiest-choice.html#. Again, this isn't mainstream stuff, not yet, anyway, but it's a viewpoint worth investigating when deciding.