Milk tends to caramelize as soon as lye is added due to the natural proteins and sugar. That ammonia smell should go away after the soap cures. For that size batch, I would have used 6 ozs. of liquid instead of 8 ozs. If you prefer a lighter colored soap, use minimum water required to dissolve the lye, then add the rest as milk. You can do that either when the lye cools off, or as soon as your oils and lye are mixed. I add my milk at room temp. If you don't let the batch gel, you will get a lighter color. Be aware that if you don't gel, the soap might zap; up to three days later. After that it should be fine.
Since this is a one pound recipe, I would convert those ounces in grams. It will be more accurate that way.
_________________ Irena Closed minds are like faulty parachutes; they refuse to open.
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