I used GE for the first time in DFW on Friday. I had some hard cheese with me and, given all the warnings here to always answer truthfully lest you lose your GE if your bags were inspected, I answered "yes" to the question as to whether I had "dairy" with me (I assumed a product made with milk counted as "dairy"). Naturally I got the X, and went to the agent and explained why. He gave me a sorta "why did you do that, you idiot?" look, scanned my passport again, and stamped the back of the X receipt with his oval-shaped "admitted" stamp. 'showed that to the Customs guy, who asked "is that the only food you have"?, and sent me on my way.
I guess the lesson is that if you have a milk productwith you that you know is APHIS-approved, it's not considered a "dairy" product for the purposes of the GE kiosk. Although they really should revise the kiosk question to clarify what, exactly, they are looking for.