My daugther also needed to avoid milk protein. Your friends options are a soy formula or the formula Nutramigen that is easier on the digestive system than soy. Nutramigen is much more expensive than others at about $25 a container, but contains no milk protien and like I mentioned doesn't cause the gas pains and bloating often experienced by litle babies on soy. Once the baby begins solid foods, she'll be fine mixing cereal with water or soy milk.
My daughter is a healthy 16 month old now and we follow a mostly vegan and stricly vegetarian diet. What's great is that there are sooo many options out there now. Whole foods, Trader Joe's and even Jewel and Dominik's carry soy products and vegan options. Vegan just means, no animal products so anything vegan will not have the milk protein that needs to be avoided. If your friend want's more info I'm happy to help.
And, I have the best healthy Vegan Mac and Cheese recipe if anyone's interested. It's especially great for those who can't have the milk and cheese due to allergies!