+1 to the milk. I've heard laser printers work better (along with glossy grade paper if you want rich colors to pop). I've only used ink jet printers with normal paper, however. I've had great success. The colors do bleed a touch, but since you're not drenching the label in milk, you'd never see the bleed if you weren't looking. In fact, I dont see a bleed on most of my labels even when I'm looking.
If you have access to a laser, use it. Otherwise, inkjet away!