U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                 Quarterly Report under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934

                      For the Period ended October 31, 2006

                        Commission File Number 333-124304


                             MILK BOTTLE CARDS INC.
                 (Name of small business issuer in its charter)

        Nevada                         2771                    20-1904354
(State of incorporation)      (Primary SIC Number)      (IRS Employer ID Number)

                              127 East 18th Avenue
                          Vancouver, BC, Canada V5V 1E4
                             Telephone (604)733-6194
                                Fax (604)733-6195
          (Address and telephone number of principal executive offices)

Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

There were 3,000,000 shares of Common Stock outstanding as of October 31, 2006.
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                             October 31, 2006       January 31, 2006
                                                             ----------------       ----------------
                                                                (Unaudited)
<S>                                                              <C>                   <C>
                                     ASSETS

CURRENT ASSETS
  Cash                                                           $  8,317              $ 19,230
                                                                 --------              --------

                                                                 $  8,317              $ 19,230
                                                                 ========              ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable and accrued liabilities                       $    870              $  2,771
                                                                 --------              --------

STOCKHOLDERS' EQUITY
  Capital stock (Note 3)
    100,000,000 authorized Common stock, $0.001 par value,
    3,000,000 common shares issued and outstanding                  3,000                 3,000
     (January 31, 2006 - 3,000,000)
  Additional paid in capital                                       32,000                32,000
  Deficit accumulated during the development stage                (27,553)              (18,541)
                                                                 --------              --------

                                                                    7,447                16,459
                                                                 --------              --------

                                                                 $  8,317              $ 19,230
                                                                 ========              ========
</TABLE>

                 The accompanying notes are an integral part of
                       these interim financial statements

                                       2
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)

                        INTERIM STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                       Cumulative from
                                              Nine Month Ended               Three Months Ended       November 19, 2004
                                        ---------------------------     ---------------------------    (inception) to
                                        October 31,     October 31,     October 31,     October 31,      October 31,
                                           2006            2005            2006            2005             2006
                                        -----------     -----------     -----------     -----------      -----------
<S>                                     <C>             <C>             <C>             <C>              <C>
REVENUE                                 $        --     $        --     $        --     $        --      $       476

COST OF GOOD SOLD                                --              --              --              --              210
                                        -----------     -----------     -----------     -----------      -----------

GROSS PROFIT                                     --              --              --              --              266
                                        -----------     -----------     -----------     -----------      -----------
GENERAL AND ADMINISTRATIVE EXPENSES
  Office and general                          1,282             906             802             563           15,425
  Professional fees                           6,450           5,654           1,365           1,500            7,897
  Regulatory and filing fees                  1,280             680             227             680            4,497
                                        -----------     -----------     -----------     -----------      -----------

                                              9,012           7,240           2,394           2,743           27,819
                                        -----------     -----------     -----------     -----------      -----------

NET LOSS                                $    (9,012)    $   (57,240)    $    (2,394)    $    (2,743)     $   (27,553)
                                        ===========     ===========     ===========     ===========      ===========
BASIC AND DILUTED NET LOSS PER
 COMMON SHARE                           $     (0.00)    $     (0.00)    $     (0.00)    $     (0.00)
                                        ===========     ===========     ===========     ===========
WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                       3,000,000       2,150,183       3,000,000       2,450,549
                                        ===========     ===========     ===========     ===========
</TABLE>

                 The accompanying notes are an integral part of
                       these interim financial statements

                                       3
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)

                        STATEMENT OF STOCKHOLDERS' EQUITY
      FOR THE PERIOD FROM NOVEMBER 19, 2004 (INCEPTION) TO OCTOBER 31, 2006

<TABLE>
<CAPTION>
                                                                                        Deficit
                                                                                      Accumulated
                                                                       Additional     During the
                                                   Common Shares         Paid in      Development
                                              Number         Amount      Capital         Stage         Total
                                              ------         ------      -------         -----         -----
<S>                                         <C>           <C>          <C>           <C>            <C>
Balance, November 19, 2004                          --     $      --    $      --     $      --      $      --

Issued for cash at $0.005 per share -
 November 29, 2004                           2,000,000         2,000        8,000            --         10,000

Net loss                                            --            --           --        (6,034)        (6,034)
                                             ---------     ---------    ---------     ---------      ---------
Balance, January 31, 2005 (audited)          2,000,000         2,000        8,000        (6,034)         3,966

Issued for cash at $0.025 per share -
 September 20, 2005                          1,000,000         1,000       24,000            --         25,000

Net loss                                            --            --           --       (12,507)       (12,507)
                                             ---------     ---------    ---------     ---------      ---------
Balance, January 31, 2006 (audited)          3,000,000         3,000       32,000       (18,541)        16,459

Net loss                                            --            --           --        (9,012)         9,012)
                                             ---------     ---------    ---------     ---------      ---------

Balance, October 31, 2006 (unaudited)        3,000,000     $   3,000    $  32,000     $ (27,553)     $   7,447
                                             =========     =========    =========     =========      =========
</TABLE>

                 The accompanying notes are an integral part of
                       these interim financial statements

                                       4
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)

                        INTERIM STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                       Cumulative from
                                                                                      November 19, 2004
                                                   Nine Months Ended October 31,       (inception) to
                                                   -----------------------------         October 31,
                                                      2006               2005               2006
                                                    --------           --------           --------
<S>                                                 <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                          $ (9,012)          $ (7,240)          $(27,553)
  Adjustments to reconcile net loss to net cash
   used in operating activities:
     Inventory                                            --               (210)                --
     Accounts payable and accrued liabilities         (1,901)            (3,600)               870
                                                    --------           --------           --------

NET CASH USED IN OPERATING ACTIVITIES                (10,913)           (11,050)           (26,683)
                                                    --------           --------           --------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds on sale of common stock                        --             25,000             35,000
  Related party advances                                  --                 --                 --
                                                    --------           --------           --------

NET CASH PROVICED BY FINANCING ACTIVITIES                 --             25,000             35,000
                                                    --------           --------           --------

INCREASE (DECREASE) IN CASH                          (10,913)            13,950              8,317

CASH, BEGINNING                                       19,230              9,841                 --
                                                    --------           --------           --------

CASH, ENDING                                        $  8,317           $ 23,791           $  8,317
                                                    ========           ========           ========

Supplemental disclosures:

Cash paid for:
  Interest                                          $     --           $     --           $     --
                                                    ========           ========           ========

  Taxes                                             $     --           $     --           $     --
                                                    ========           ========           ========
</TABLE>

                 The accompanying notes are an integral part of
                       these interim financial statements

                                       5
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 1 - NATURE AND CONTINUANCE OF OPERATIONS

ORGANIZATION

Milk Bottle Cards Inc. (the  "Company") was  incorporated  under the laws of the
State of Nevada on November 19, 2004 for the purpose of producing,  distributing
and marketing a collection of greeting cards.

These financial  statements  have been prepared on a going concern basis,  which
implies that the Company will  continue to realize its assets and  discharge its
liabilities in the normal course of business.  The Company's ability to continue
as a going  concern is  dependent on raising  additional  capital to fund future
operations and ultimately to attain profitable operations.  The Company has been
in the initial  organization  stage since  inception and as at October 31, 2006,
the Company has accumulated losses of $27,553 since inception.  Since inception,
the  Company  has funded  operations  through  the  issuance  of capital  stock.
Management's plan is to continue raising  additional funds through future equity
or debt  financings  until it achieves  profitable  operations from sales of its
greeting cards.  There is no certainty that additional funding will be available
when  needed.  Accordingly,  these  factors  raise  substantial  doubt as to the
Company's ability to continue as a going concern.  These financial statements do
not include any adjustments to the recoverability and classification of recorded
asset amounts and  classification  of liabilities that might be necessary should
the Company be unable to continue as a going concern.

UNAUDITED INTERIM FINANCIAL STATEMENTS

The accompanying  unaudited interim  financial  statements have been prepared in
accordance  with United States  generally  accepted  accounting  principles  for
interim  financial  information  and with the  instructions  to Form  10-QSB  of
Regulation S-B. They do not include all  information  and footnotes  required by
United States generally  accepted  accounting  principles for complete financial
statements.  However,  except as  disclosed  herein,  there has been no material
changes in the  information  disclosed in the notes to the financial  statements
for the year ended January 31, 2006  included in the Company's  Annual Report on
Form 10-KSB  filed with the  Securities  and  Exchange  Commission.  The interim
unaudited  financial  statements  should  be  read  in  conjunction  with  those
financial  statements included in the Form 10-KSB. In the opinion of Management,
all adjustments considered necessary for a fair presentation,  consisting solely
of normal recurring adjustments,  have been made. Operating results for the nine
months ended October 31, 2006 are not necessarily indicative of the results that
may be expected for the year ending January 31, 2007.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

These financial  statements are presented in United States dollars and have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles.

                                       6
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

DEVELOPMENT STAGE ENTERPRISE

The  Company  is  a  development  stage  enterprise,  as  defined  in  Financial
Accounting Standards Board Statement ("SFAS") No. 7 "Accounting and Reporting by
Development  Stage  Enterprises".  The  Company is  devoting  all of its present
efforts to securing  and  establishing  a new  business.  Its planned  principal
operations have commenced;  however, the Company has yet to derive a significant
amount of revenue from operations.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  on
contingent assets and liabilities at the date of the financial  statements,  and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

The Company considers all liquid investments, with an original maturity of three
months or less when purchased, to be cash equivalents.

REVENUE RECOGNITION

The Company recognizes revenue when products have been shipped,  the amounts are
fixed  or  determinable  and  collection  is  reasonably  assured.  The  Company
recognizes  revenue from sales of  consignment  goods when cash is received from
the consignor.

FINANCIAL INSTRUMENTS

In accordance  with the  requirements of SFAS No. 107,  "Disclosures  about Fair
Value of Financial  Instruments,"  the Company has determined the estimated fair
value  of  financial   instruments   using  available  market   information  and
appropriate  valuation  methodologies.  The carrying values of cash and accounts
payable and accrued  liabilities  approximate  fair values due to the short-term
maturity of the instruments.

INCOME TAXES

The Company has adopted  SFAS No. 109  "Accounting  for Income  Taxes" as of its
inception.  Pursuant  to SFAS No.  109,  the  Company is required to compute tax
asset benefits for net operating  losses carried forward.  Potential  benefit of
net  operating  losses have not been  recognized in these  financial  statements
because the Company cannot be assured it is more likely than not it will utilize
the net operating losses carried forward in future years.

                                       7
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 2  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

LOSS PER COMMON SHARE

The  Company  computes  net loss per  share in  accordance  with  SFAS No.  128,
"Earnings  per  Share".  SFAS No. 128  requires  presentation  of both basic and
diluted  earnings per share (EPS) on the face of the  statement  of  operations.
Basic  EPS is  computed  by  dividing  net  income  (loss)  available  to common
shareholders  (numerator) by the weighted  average number of shares  outstanding
(denominator)  during the period.  Diluted EPS gives  effect to all  potentially
dilutive  common shares  outstanding  during the period using the treasury stock
method and  convertible  preferred  stock using the "if  converted"  method.  In
computing  diluted  EPS,  the  average  stock  price  for the  period is used in
determining  the number of shares  assumed to be purchased  from the exercise of
stock options or warrants.  Diluted EPS excludes all potentially dilutive shares
if their  effect is anti  dilutive.  The Company has not issued any  potentially
dilutive  instruments since inception and accordingly  diluted loss per share is
equal to basic loss per share .

FOREIGN CURRENCY TRANSLATION

The Company's  functional currency and reporting currency is the U.S. dollar. In
accordance with SFAS No. 52, "Foreign Currency Translation", foreign denominated
monetary assets and liabilities are translated to their U.S. dollar  equivalents
using foreign exchange rates which prevailed at the balance sheet date.  Revenue
and  expenses  are  translated  at average  rates of  exchange  during the year.
Related  translation  adjustments  are  reported  as  a  separate  component  of
stockholders'  equity,  whereas gains or losses  resulting from foreign currency
transactions are included in results of operations.  To date the Company has not
reported any translation adjustments or transaction gains or losses.

STOCK-BASED COMPENSATION

In December  2004, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement  of Financial  Accounting  Standard  ("SFAS")  No. 123R,  "Share-Based
Payment", which replaced SFAS No. 123, "Accounting for Stock-Based Compensation"
and superseded APB Opinion No. 25,  "Accounting  for Stock Issued to Employees".
In January 2005,  the Securities  and Exchange  Commission  ("SEC") issued Staff
Accounting  Bulletin  ("SAB") No. 107,  "Share-Based  Payment",  which  provides
supplemental  implementation  guidance for SFAS No. 123R. SFAS No. 123R requires
all  share-based  payments to  employees,  including  grants of  employee  stock
options,  to be recognized in the financial  statements  based on the grant date
fair value of the award. SFAS No. 123R was to be effective for interim or annual
reporting periods beginning on or after June 15, 2005, but in April 2005 the SEC
issued a rule that will permit most  registrants  to implement  SFAS No. 123R at
the beginning of their next fiscal year, instead of the next reporting period as
required by SFAS No. 123R. The pro-forma disclosures  previously permitted under
SFAS  No.  123  no  longer  will  be  an  alternative  to  financial   statement
recognition.  Under SFAS No. 123R,  the Company must  determine the  appropriate
fair value model to be used for valuing share-based  payments,  the amortization
method for  compensation  cost and the  transition  method to be used at date of
adoption.  The transition methods include  prospective and retroactive  adoption
options.  Under the retroactive options, prior periods may be restated either as
of the  beginning  of the year of  adoption or for all  periods  presented.  The
prospective  method  requires  that  compensation  expense be  recorded  for all
unvested  stock  options  and  restricted  stock at the  beginning  of the first
quarter of adoption of SFAS No. 123R, while the retroactive methods would record
compensation  expense  for all  unvested  stock  options  and  restricted  stock
beginning  with  the  first  period  restated.   The  Company  has  adopted  the
requirements of SFAS No. 123R for the fiscal year beginning on February 1, 2006.

                                       8
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

STOCK-BASED COMPENSATION (CONTINUED)

Prior to the  adoption  of SFAS No.  123R,  the  Company  measured  compensation
expense for its  employee  stock-based  compensation  plans using the  intrinsic
value  method  prescribed  by APB  Opinion  No.  25.  The  Company  applied  the
disclosure  provisions  of SFAS No. 123 as amended by SFAS No. 148,  "Accounting
for  Stock-Based   Compensation  -  Transition  and   Disclosure",   as  if  the
fair-value-based  method had been  applied in  measuring  compensation  expense.
Under APB Opinion  No. 25, when the  exercise  price of the  Company's  employee
stock options was equal to the market price of the underlying  stock on the date
of the grant, no compensation expense was recognized.

The  Company  has not  granted any stock  options  since  inception  and has not
recorded any stock-based compensation.

COMPREHENSIVE INCOME

SFAS No.  130,  "Reporting  Comprehensive  Income,"  establishes  standards  for
reporting  and  presentation  of  comprehensive   income,   its  components  and
accumulated balances.  Comprehensive income is defined to include all changes in
equity except those resulting from  investments by owners and  distributions  to
owners.  Among other  disclosures,  SFAS No.130 requires that all items that are
required to be recognized  under current  accounting  standards as components of
comprehensive income be reported in a financial statement that is presented with
the same prominence as other financial statements. The Company does not have any
assets requiring disclosure of comprehensive income.

RECENT ACCOUNTING PRONOUNCEMENTS

In February 2006, the FASB issued SFAS No. 155,  "Accounting  for Certain Hybrid
Financial  Instruments-an  amendment  of FASB  Statements  No. 133 and 140",  to
simplify  and  make  more  consistent  the  accounting  for  certain   financial
instruments.  SFAS No. 155  amends  SFAS No.  133,  "Accounting  for  Derivative
Instruments and Hedging Activities",  to permit fair value remeasurement for any
hybrid  financial  instrument  with an embedded  derivative that otherwise would
require  bifurcation,  provided that the whole  instrument is accounted for on a
fair  value  basis.  SFAS No.  155  amends  SFAS No.  140,  "Accounting  for the
Impairment   or  Disposal  of   Long-Lived   Assets",   to  allow  a  qualifying
special-purpose  entity to hold a derivative  financial instrument that pertains
to a beneficial  interest other than another  derivative  financial  instrument.
SFAS No. 155 applies to all financial  instruments  acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with earlier  application  allowed.  Management  does not expect the adoption of
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

                                       9
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets,  an  amendment  of FASB  Statement  No. 140,  Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent  measurement using either fair value measurement with changes in fair
value reflected in earnings or the amortization  and impairment  requirements of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and  servicing  liabilities  at fair value  eliminates  the necessity for
entities  that  manage the risks  inherent  in  servicing  assets and  servicing
liabilities  with  derivatives  to qualify for hedge  accounting  treatment  and
eliminates  the  characterization  of declines in fair value as  impairments  or
direct write-downs.  SFAS No. 156 is effective for an entity's first fiscal year
beginning after  September 15, 2006.  Management does not expect the adoption of
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

In September  2006, the FASB issued SFAS No. 157, "FAIR VALUE  MEASURES"  ("SFAS
No.  157").  This  Statement  defines fair value,  establishes  a framework  for
measuring fair value in generally accepted accounting principles (GAAP), expands
disclosures  about fair value  measurements,  and applies under other accounting
pronouncements that require or permit fair value measurements. SFAS No. 157 does
not require any new fair value measurements.  However, the FASB anticipates that
for some entities, the application of SFAS No. 157 will change current practice.
SFAS No. 157 is  effective  for  financial  statements  issued for fiscal  years
beginning  after  November 15, 2007,  which for the Company  would be its fiscal
year beginning  January 1, 2008. The Company is currently  evaluating the impact
of SFAS No. 157 but does not expect  that it will have a material  impact on its
financial statements.

In September  2006,  the FASB issued SFAS No. 158,  "Employers'  Accounting  for
Defined Benefit Pension and Other Postretirement Plans." This Statement requires
an employer to  recognize  the over funded or under  funded  status of a defined
benefit post retirement  plan (other than a  multiemployer  plan) as an asset or
liability in its statement of financial  position,  and to recognize  changes in
that funded status in the year in which the changes occur through  comprehensive
income.  SFAS No. 158 is effective  for fiscal  years ending after  December 15,
2006. The Company does not expect that the  implementation  of SFAS No. 158 will
have any material impact on its financial position and results of operations.

In September  2006, the SEC issued Staff  Accounting  Bulletin  ("SAB") No. 108,
"Considering   the  Effects  of  Prior  Year   Misstatements   when  Quantifying
Misstatements  in Current Year Financial  Statements." SAB No. 108 addresses how
the effects of prior year  uncorrected  misstatements  should be considered when
quantifying  misstatements  in current year  financial  statements.  SAB No. 108
requires  companies to quantify  misstatements  using a balance sheet and income
statement   approach  and  to  evaluate   whether  either  approach  results  in
quantifying  an error that is  material in light of  relevant  quantitative  and
qualitative  factors. SAB No. 108 is effective for periods ending after November
15, 2006. The Company is currently evaluating the impact of adopting SAB No. 108
but does  not  expect  that it will  have a  material  effect  on its  financial
statements.

                                       10
<PAGE>
                             MILK BOTTLE CARDS INC.
                        (A Development Stage Enterprise)
                                OCTOBER 31, 2006
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 3 - COMMON STOCK

The Company's authorized  capitalization is 100,000,000 common shares with a par
value of $0.001 per share.

Since  inception,  the Company  has not  granted  any stock  options and has not
recorded any stock-based compensation.

Effective November 29, 2004, a total of 2,000,000 shares of the Company's common
stock were issued to the founding and sole director of the Company pursuant to a
stock subscription agreement at $0.005 per share for total proceeds of $10,000.

Effective  September  20,  2005, a total of  1,000,000  shares of the  Company's
common stock were issued pursuant to stock subscription agreements at $0.025 per
share for total proceeds of $25,000.

NOTE 4 - RELATED PARTY TRANSACTIONS

The Company has had no significant  related party  transactions with any related
individuals or entities.

The Company  currently uses office space provided by the director of the Company
on a rent-free  basis not subject to any formal rental or lease  agreement.  The
Company has  determined  that the fair value of the office space provided is not
significant  and  accordingly no related rent expense has been recorded in these
financial statements.

The  President  currently  donates  card design and  production  services to the
Company. The Company has determined that the fair value of these services is not
significant  and  accordingly  no related  expense  has been  recorded  in these
financial statements.

                                       11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are still in our development stage and have only recently commenced
operations and the development of our greeting card business.

For the three months ended October 31, 2006 we generated no revenues and
incurred operating expenses of $2,394. These expenses consisted of general
operating expenses incurred in connection with the day to day operation of our
business and the preparation and filing of our periodic reports.

We had no revenues for the three months ended October 31, 2006 and 2005. Our net
loss for the three months ended October 31, 2006 and 2005 was $2,394 and $2,743,
respectively.

We had no revenues for the nine months ended October 31, 2006 and 2005. Our net
loss for the nine months ended October 31, 2006 and 2005 was $4,786 and $7,240,
respectively.

From inception (November 19, 2004) through October 31, 2006 we had revenues or
$476 and net losses of $27,553.

In their report on our audited financial statements as of the year ended January
31, 2006, our auditors expressed their doubt about our ability to continue as a
going concern based on our current financial position.

LIQUIDITY AND CAPITAL RESOURCES

We expect to be able to satisfy our cash requirements for at least the next 3
months with our cash in the bank of $8,317 at October 31, 2006 without having to
raise additional funds or seek bank loans. After that 3 month period, if we have
not yet generated revenues sufficient to sustain business operations, we may
have to raise additional monies through sales of our equity securities or
through loans from banks or third parties to continue our business plans.
No assurances can be given that we will be able to raise additional financing to
satisfy our financial requirements.

As resources remain available, we will continue to produce and market our
greeting card collections. However, we may decide that we can not continue with
our business operations as detailed in our original business plan because of a
lack of financial resources. We may look for other potential business
opportunities that might be available to the Company. There can be no
certainties that there will be any other business opportunities available; nor
the nature of the business opportunity; nor any indication of the financial
resources required of any possible business opportunity.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

BUSINESS OPERATIONS OVERVIEW

We have a total of 100,000,000 authorized common shares with a par value of
$0.001 per share and 3,000,000 common shares issued and outstanding as of
October 31, 2006.

In furtherance of our business we have the following plans:

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     *    Our website at www.milkbottlecards.com currently displays several
          different cards for sale; including hand painted cards, holiday,
          birthday and thank you cards. We have completed design work for a new
          series of cards for birthdays, weddings, baby showers, and blank
          cards. We expect to have the new cards available for sale in December
          2006.

     *    Online Paypal purchasing is expected to be available by December 2006
          to facilitate online purchasing.

     *    We continue to contact more corporate entities and introduce them to
          Milk Bottle Cards and our custom card opportunities especially for the
          2006 holiday season.

     *    We currently have a card inventory of 300 cards and we anticipate
          increasing the card inventory to in excess of 500 cards; inclusive of
          cards of all categories, with an increased emphasis on birthday cards
          and hand painted cards in Spring colors. The production of hand
          painted cards by our president will continue.

     *    We are looking into selling the hand painted cards and collaged cards
          at an increased price as `original pieces of art', and then scanning
          them and selling the prints of these `originals' in limited edition
          series as they do with art prints.

     *    We recently made contact with a gift store in Vancouver that
          specializes in paper products. Unfortunately they have already
          purchased all the cards they need for the holiday season but we have
          been asked to contact them in 2007.

     *    We will continue to market the collection to other retail stores in
          throughout Winter 2006 and Spring 2007. In addition, we anticipate
          participating in local gift and home living trade shows in Spring
          2007.

     *    We are going to research new printing techniques in order to reduce
          the problem with wasted materials we have encountered in our
          production of the printed cards due to the overuse of our printer.

     *    Our president plans on hosting a home party sale during the Winter
          2006 where she will invite family, friends and business associates to
          view and purchase cards from the new collection.

CRITICAL ACCOUNTING POLICIES

The unaudited financial statements as of October 31, 2006 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our January 31, 2006 audited financial statements and notes
thereto, which can be found in our Form 10-KSB Annual Report on the SEC website
at www.sec.gov under our SEC File Number 333-124304.

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<PAGE>
BASIS OF PRESENTATION

These financial statements are presented in United States dollars and have been
prepared in accordance with United States generally accepted accounting
principles.

DEVELOPMENT STAGE ENTERPRISE

The Company is a development stage enterprise, as defined in Financial
Accounting Standards Board Statement ("SFAS") No. 7 "Accounting and Reporting by
Development Stage Enterprises". The Company is devoting all of its present
efforts to securing and establishing a new business. Its planned principal
operations have commenced; however, the Company has yet to derive a significant
amount of revenue from operations.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure on
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

The Company considers all liquid investments, with an original maturity of three
months or less when purchased, to be cash equivalents.

REVENUE RECOGNITION

The Company recognizes revenue when products have been shipped, the amounts are
fixed or determinable and collection is reasonably assured. The Company
recognizes revenue from sales of consignment goods when cash is received from
the consignor.

FINANCIAL INSTRUMENTS

In accordance with the requirements of SFAS No. 107, "Disclosures about Fair
Value of Financial Instruments," the Company has determined the estimated fair
value of financial instruments using available market information and
appropriate valuation methodologies. The carrying values of cash and accounts
payable and accrued liabilities approximate fair values due to the short-term
maturity of the instruments.

INCOME TAXES

The Company has adopted SFAS No. 109 "Accounting for Income Taxes" as of its
inception. Pursuant to SFAS No. 109, the Company is required to compute tax
asset benefits for net operating losses carried forward. Potential benefit of
net operating losses have not been recognized in these financial statements
because the Company cannot be assured it is more likely than not it will utilize
the net operating losses carried forward in future years.

LOSS PER COMMON SHARE

The Company computes net loss per share in accordance with SFAS No. 128,
"Earnings per Share". SFAS No. 128 requires presentation of both basic and
diluted earnings per share (EPS) on the face of the statement of operations.
Basic EPS is computed by dividing net income (loss) available to common
shareholders (numerator) by the weighted average number of shares outstanding

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<PAGE>
(denominator) during the period. Diluted EPS gives effect to all potentially
dilutive common shares outstanding during the period using the treasury stock
method and convertible preferred stock using the "if converted" method. In
computing diluted EPS, the average stock price for the period is used in
determining the number of shares assumed to be purchased from the exercise of
stock options or warrants. Diluted EPS excludes all potentially dilutive shares
if their effect is anti dilutive. The Company has not issued any potentially
dilutive instruments since inception and accordingly only basic loss per share
is presented.

FOREIGN CURRENCY TRANSLATION

The Company's functional currency and reporting currency is the U.S. dollar. In
accordance with SFAS No. 52, "Foreign Currency Translation", foreign denominated
monetary assets and liabilities are translated to their U.S. dollar equivalents
using foreign exchange rates which prevailed at the balance sheet date. Revenue
and expenses are translated at average rates of exchange during the year.
Related translation adjustments are reported as a separate component of
stockholders' equity, whereas gains or losses resulting from foreign currency
transactions are included in results of operations. To date the Company has not
reported any translation adjustments or transaction gains or losses.

STOCK-BASED COMPENSATION

In December 2004, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 123R, "Share-Based
Payment", which replaced SFAS No. 123, "Accounting for Stock-Based Compensation"
and superseded APB Opinion No. 25, "Accounting for Stock Issued to Employees".
In January 2005, the Securities and Exchange Commission ("SEC") issued Staff
Accounting Bulletin ("SAB") No. 107, "Share-Based Payment", which provides
supplemental implementation guidance for SFAS No. 123R. SFAS No. 123R requires
all share-based payments to employees, including grants of employee stock
options, to be recognized in the financial statements based on the grant date
fair value of the award. SFAS No. 123R was to be effective for interim or annual
reporting periods beginning on or after June 15, 2005, but in April 2005 the SEC
issued a rule that will permit most registrants to implement SFAS No. 123R at
the beginning of their next fiscal year, instead of the next reporting period as
required by SFAS No. 123R. The pro-forma disclosures previously permitted under
SFAS No. 123 no longer will be an alternative to financial statement
recognition. Under SFAS No. 123R, the Company must determine the appropriate
fair value model to be used for valuing share-based payments, the amortization
method for compensation cost and the transition method to be used at date of
adoption. The transition methods include prospective and retroactive adoption
options. Under the retroactive options, prior periods may be restated either as
of the beginning of the year of adoption or for all periods presented. The
prospective method requires that compensation expense be recorded for all
unvested stock options and restricted stock at the beginning of the first
quarter of adoption of SFAS No. 123R, while the retroactive methods would record
compensation expense for all unvested stock options and restricted stock
beginning with the first period restated. The Company has adopted the
requirements of SFAS No. 123R for the fiscal year beginning on February 1, 2006.

Prior to the adoption of SFAS No. 123R, the Company measured compensation
expense for its employee stock-based compensation plans using the intrinsic
value method prescribed by APB Opinion No. 25. The Company applied the
disclosure provisions of SFAS No. 123 as amended by SFAS No. 148, "Accounting
for Stock-Based Compensation - Transition and Disclosure", as if the
fair-value-based method had been applied in measuring compensation expense.
Under APB Opinion No. 25, when the exercise price of the Company's employee

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<PAGE>
stock options was equal to the market price of the underlying stock on the date
of the grant, no compensation expense was recognized.

The Company has not granted any stock options since inception and has not
recorded any stock-based compensation.

COMPREHENSIVE INCOME

SFAS No. 130, "Reporting Comprehensive Income," establishes standards for
reporting and presentation of comprehensive income, its components and
accumulated balances. Comprehensive income is defined to include all changes in
equity except those resulting from investments by owners and distributions to
owners. Among other disclosures, SFAS No.130 requires that all items that are
required to be recognized under current accounting standards as components of
comprehensive income be reported in a financial statement that is presented with
the same prominence as other financial statements. The Company does not have any
assets requiring disclosure of comprehensive income.

RECENT ACCOUNTING PRONOUNCEMENTS

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments-an amendment of FASB Statements No. 133 and 140", to
simplify and make more consistent the accounting for certain financial
instruments. SFAS No. 155 amends SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities", to permit fair value re-measurement for any
hybrid financial instrument with an embedded derivative that otherwise would
require bifurcation, provided that the whole instrument is accounted for on a
fair value basis. SFAS No. 155 amends SFAS No. 140, "Accounting for the
Impairment or Disposal of Long-Lived Assets", to allow a qualifying
special-purpose entity to hold a derivative financial instrument that pertains
to a beneficial interest other than another derivative financial instrument.
SFAS No. 155 applies to all financial instruments acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with earlier application allowed. Management does not expect the adoption of
this statement will have a material impact on the Company's results of
operations or financial condition.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets, an amendment of FASB Statement No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent measurement using either fair value measurement with changes in fair
value reflected in earnings or the amortization and impairment requirements of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and servicing liabilities at fair value eliminates the necessity for
entities that manage the risks inherent in servicing assets and servicing
liabilities with derivatives to qualify for hedge accounting treatment and
eliminates the characterization of declines in fair value as impairments or
direct write-downs. SFAS No. 156 is effective for an entity's first fiscal year
beginning after September 15, 2006. Management does not expect the adoption of
this statement will have a material impact on the Company's results of
operations or financial condition.

In September 2006, the FASB issued SFAS No. 157, "FAIR VALUE MEASURES" ("SFAS
No. 157"). This Statement defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles (GAAP), expands
disclosures about fair value measurements, and applies under other accounting

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<PAGE>
pronouncements that require or permit fair value measurements. SFAS No. 157 does
not require any new fair value measurements. However, the FASB anticipates that
for some entities, the application of SFAS No. 157 will change current practice.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, which for the Company would be its fiscal
year beginning January 1, 2008. The Company is currently evaluating the impact
of SFAS No. 157 but does not expect that it will have a material impact on its
financial statements.

In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans." This Statement requires
an employer to recognize the over funded or under funded status of a defined
benefit post retirement plan (other than a multiemployer plan) as an asset or
liability in its statement of financial position, and to recognize changes in
that funded status in the year in which the changes occur through comprehensive
income. SFAS No. 158 is effective for fiscal years ending after December 15,
2006. The Company does not expect that the implementation of SFAS No. 158 will
have any material impact on its financial position and results of operations.

In September 2006, the SEC issued Staff Accounting Bulletin ("SAB") No. 108,
"Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements." SAB No. 108 addresses how
the effects of prior year uncorrected misstatements should be considered when
quantifying misstatements in current year financial statements. SAB No. 108
requires companies to quantify misstatements using a balance sheet and income
statement approach and to evaluate whether either approach results in
quantifying an error that is material in light of relevant quantitative and
qualitative factors. SAB No. 108 is effective for periods ending after November
15, 2006. The Company is currently evaluating the impact of adopting SAB No. 108
but does not expect that it will have a material effect on its financial
statements.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have not identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS

The following exhibits are included with this quarterly reporting filing.
Those marked with an asterisk and required to be filed hereunder, are
incorporated by reference and can be found in their entirety in our original
Form SB-2 Registration Statement, filed under SEC File Number 333-124304, at the
SEC website at www.sec.gov:

      Exhibit No.                         Description
      -----------                         -----------
         3.1         Articles of Incorporation*
         3.2         Bylaws*
         31          Sec. 302 Certification of Principal Executive Officer
                     and Principal Financial Officer
         32          Sec. 906 Certification of Principal Executive Officer
                     and Principal Financial Officer

                                   SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

December 5, 2006                  Milk Bottle Cards Inc., Registrant


                                  By: /s/ Nicole Milkovich
                                      -----------------------------------------
                                      Nicole Milkovich, Chief Executive Officer

In accordance with the Exchange Act, this report has been signed below by the
following person on behalf of the registrant and in the capacities and on the
date indicated.

December 5, 2006                  Milk Bottle Cards Inc., Registrant


                                  By: /s/ Nicole Milkovich
                                      -----------------------------------------
                                      Nicole Milkovich, President, Secretary,
                                      Treasurer, Chief Executive Officer,
                                      Chief Financial Officer, and
                                      Principal Accounting Officer

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