When we add water to milk, they form a homogeneous mixture because:
Particles of milk enter into the spaces between particles of the water.
Particles of matter are unimaginably small and there is a lot of empty space between these particles. Thus, when two different particles of matter are mixed, particles of one matter fill up spaces between the particles of another matter. When we add water to milk, the particles of water enter the empty spaces between the particles of milk and conversely the particles of milk enter the empty spaces between the particles of water. Thus, they mix really well and form a homogeneous mixture.