Milk contains lactose so that is inducing the lac operon. But induction by lactose should only work in a strain that is also expressing LacZ which converts lactose to allolactose, the actual inducer of the operon. BL21 is in fact LacZ+ so this should work. However IPTG is really cheap these days and I'm not sure why someone would use milk as an inducer since you don't really know how the concentration of lactose in the milk.