Evaporated milk is regular milk that has been cooked slowly until it has reduced in volume and most of its water content has evaporated. It is slightly sweet and very flavorful. Condensed milk is made by simmering milk and sugar together until it has thickened and reduced by about half. It is very sweet with a thick and creamy texture. Condensed milk is used to make caramel sauce, or used in pumpkin or key lime pies.