I have given my 8 month old Yo Baby, and it seems like it makes him spit up more? I believe the restriction is only on whole milk, not other dairy products, because the process of making yogurt or cheese processes a lot of the milk proteins that are hard on their tummies.
I make most of my son's food. www.wholesomebabyfood.com is a fantastic resource for when to give different foods & how to prepare them. I make apples, pears, plums & peaches and squash & sweet potatoes by peeling, cubing & simmering in a little water until very soft, and then pureeing in my little 3-cup food processor. Lately I have also used my pampered chef grater with the bigger holes to make a chunkier texture. Green beans & peas are also good, but you have to push them through a sieve to get the right texture at first.
As far as finger foods go, my son loves tiny pieces of bread, tiny cubes of cheese (or shredded cheese), cheerios, rice krispies & gerber puffs. Bananas are another good choice, and one way to make them less slippery is to smash some cheerios or rice krispies to powder & then roll small pieces of banana in them. My little guy also does not have any teeth yet, but I think they actually use their gums to chew up food until they get molars anyway. I read somewhere that a good size guideline for finger food is smaller than the tip of their fingers.