Any one else have delayed (almost 2
> hours after
> ingestion) serious reactions to dairy?

This sounds similar to what happened to our son. He was challenged
at the Hospital too - they did keep him all morning there,
sipping little amounts of milk. I personally saw the swelling
of his face and the red cheeks too, as you say, but it was also
dismissed by the doctor as "a reaction from being over excited".
He was also hyper active but they said it was all the excitement
from the hospital. We were sent home with a "go ahead and give
him milk" too, but for us it was obvious that the child (he was
two years old then) was not in his normal self. He wanted to
go to sleep, didn't want to play and finally he had a massive
diarrhea episody in the middle of the street (he had been
toilet trained for some months, so very unusual). He also
developed a rash over his belly and legs that evening, and
complained of very bad leg cramps (was actually crying from
the pain at night).

Needless to say, we have not given him any milk since, and we
have also lost all confidence in our supposedly very good
allergist team, too.

Angela