I decided to try again, this time using powdered milk instead of gelatin to thicken it. I also realized last time, with using gelatin, I may not have needed to strain and let sit in fridge to thicken, which is how it got too thick.
This time, I did everything the same with the exception of using 1/2 cup powdered milk, not gelatin.
After sitting for 8 hours overnight, I checked it (having to get up at 5 am to do so, because I started too early... again. *yawn*). It was just slightly more runny than store bought yogurt. So I decided, in order to avoid letting it get too thick, to leave it as is.
Success!! After going back to bed for a few hours, I got up and had homemade yogurt with pumpkin flax granola for breakfast! The yogurt was very yummy. Though, plain, and not flavored, with makes the taste kind of bland. But, I guess I never have cared for plain yogurt for that very reason. Adding the granola to it gave it some flavor.
Again, I got two 32oz. containers of yogurt! And will save out a half cup for a starter for the next batch. I may never buy store-bought yogurt again! :) I'm thinking this new recipe will be very cost effective, now that I can use half a cup to start a new batch, I only have to buy 1/2 gallon of milk (about $2 where I live), and half a cup of powdered milk, which comes out to pennies, if that, when you buy a large container. So, two, 32oz cartons of yogurt for a little over $2, making them about a $1 each! Very good, cheap, healthy yogurt!