QUOTE from Dr Fung (emphasis mine):
“Full-fat dairy is delicious and can be enjoyed without concern of fattening effects. A review of twenty-nine randomized control trials showed neither a fat-gaining nor reducing effect. Full-fat dairy is associated with a 62 percent lower risk of type 2 diabetes.” 
NOTE (my commentary): How and why does this work?
Milk does contain lactose, which is processed in the … It is a sugar and will increase blood sugar levels.
Full-fat dairy is associated with a 62 percent lower risk of type 2 diabetes.
Consider this reality: you can eat an entire stick of pure butter without significantly increasing your blood sugar, because “butter does not contain significant sugar. Butter is made from milk, which contains lactose, or milk sugar. There is a negligible amount remaining in butter after processing, but not enough to raise your blood sugar level.” A quarter-pound stick of butter has 810 calories but only 1/10th of a gram of sugar.
“Full-fat dairy is delicious and can be enjoyed without concern of fattening effects.
Dairy foods also contain lactose, or milk sugar. ” Your body starts metabolizing or breaking down lactose in the intestines with the help of lactase, an enzyme produced and released by cells that line your small intestine. The enzyme attaches to lactose and cleaves it into molecules of galactose and glucose. Glucose is immediately absorbed into your bloodstream and used by virtually all your cells so they can produce energy and do their jobs. Galactose cannot be directly used by your body, so it is further converted into glucose after additional work by lactase and other enzymes.”  So lactose eventually becomes glucose in the body.
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SOURCE – Footnotes:
 “The Obesity Code: Unlocking the Secrets of Weight Loss” by Dr. Jason Fung, Timothy Noakes. Page 232.
 Diabetes and Butter: Is Butter Good for Diabetes? by Jennifer Bowers Ph.D, RD
 How Does the Body Metabolize Lactose? by Sirah Dubois, https://www.livestrong.com/article/562140-how-does-the-body-metabolize-lactose/
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Key: Fung-10-30.56 Last Revision: 1-12-2021