The undernutrition, in pregnancy, lactation and early life showed impaired growth of infants as well as their conceptual and sensory development.  The stunted wasted children showed persistence of ‘Soft Neurological Signs’ with EEG changes. Those with I.Q. >90 had learning disabilities. On feeding Indian Dahi (Yogurt, made with- lactobacillus bulgaricus and streptococcus thermophilus) was shown to improve immune recovery in Protein energy malnutrition PEM grade II & III malnutrition. It was compared against milk in WHO recommended 2 step diets. Interleukin levels during treatment were much higher on WHO-Dahi as compared to WHO- milk diet after 15 d and 6 wk. The absolute lymphocyte counts, CD3, CD4, CD8, CD19 and CD56 increased in children receiving Dahi in WHO diet for 6 wk. In contrast, these counts decreased in children receiving WHO milk diet. Dahi being immunonutrient should replace the milk in WHO diet for treatment of PEM. Secondly, on feeding Berseem (Trifolium Alexandrium) leaves to PEM II & III, also showed immunonutrient properties, thus may be added in commercial cereals and legumes to eradicate malnutrition from the population.