I agree the original poster is no way lactose intolerant. I can't explain why you're getting sick, but I'll bet it's half-mental and half something else. If you've recently started watching what you eat, that can cause your body to react in different ways. You may be connecting your grossed-out mental feelings of milk to the way you feel when really they aren't connected.
I used to drink fat free milk every day growing up and became lactose intolerant as a teen. I don't miss the milk much, and I'll use lactose-free stuff occasionally for mixing into things (pudding, or if on a rare occasion I bake something) and since the ones I've found don't come in fat free, they only come in 2% it seems ungodly creamy if I try just a little by itself

I remember when I was a kid thinking ff milk was gross, but really you do get used to it. Anyways, I was going to say that now that I can't drink milk (well, I can drink *a little* in certain situations, like 1/4 cup or so in starbucks and places like that) that I miss the other items more: cream cheese, yogurt, cottage cheese - things like that that have a really high protein count, but that you can buy low fat (and sometimes no fat) for a tasty, filling, protein-filled snack. Cereal is just carbs to me and I don't eat it even with lactose-free milk. Take advantage of your dairy tolerance and try some low-fat/no-fat cottage cheese and yogurt, maybe with some fruit, it'd be a much better snack than cereal.