Final answer:
The product made from whole milk by removing 60 percent of the water and sweetening with sugar is condensed milk.
Step-by-step explanation:
The product described in the question is made by removing a significant amount of water from whole milk and adding sugar, which is the process for creating condensed milk. This process concentrates the milk and increases its shelf life. Skim milk is simply milk with the fat removed, not concentrated, while powdered milk is milk that has been dried to a powder form, and lactose-free milk is regular milk that has had the lactose removed or broken down for easier digestion.