Sweetened condensed milk, or condensed milk, is thick because water has been removed and sugar has been added. The beginning product, milk, is clarified and standardized meaning they are cleared of all foreign substances and graded upon fat content. It is then heated to destroy certain organisms which decreases fat separation and inhibits oxidation. Then water is removed and sugar is added so that the sugar content is about 45% which will extend the shelf life of the milk because the change in osmotic pressure to prevent microbial growth.
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Yes, this is what condensed milk is supposed to look like. If it is watery, then the milk has gone bad.
It looks basically the same as normal milk. Depending on the brand it can be a sort of yellow coloring.
Normally it will look like a slightly darker cream. If it is yellow, it has turned rancid. A good idea is to always check the dates on the can.