Gayle, hubby attended a men's BBQ at church today and the guys all decided it's cinch bugs. One of the guys lives across the fairway from us, and said he had the same problem They said to sprinkle cornmeal on the areas for 3 weeks. I had heard sprinkling Tide would work, so we're doing Tide on the front lawn and cornmeal in the back and will see if one of them works. It not, we will try the milk mixture you suggested or the beneficial nematodes. We do have fire ants from time to time, so couldn't hurt. Thank you for the gardening help!!
Don't think Janet expected this to turn into a gardening discussion.
Janet, has your spot changed shape any??? and is the white stuff still around??
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Marilyn 
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