Before starting Paleo I had severe allergies and my body constantly itched. Within days of starting Paleo my allergies got much better. The first time I had itching was Sunday after a weekend of eating cheese which I hadn't had all week, so I figured I must have a lactose issue I didn't know about. I have been eating butter daily and today my itching has returned. The only thing I can think of that would be bothering me is the butter. I hate to see it go but it seems like no more dairy for me. Has anyone else had any issues when consuming butter? I sure will miss it.

A suggestion: before you give up on butter entirely, try goatmilk butter. Goat dairy is much more easily digested than cow dairy. Any healthfood should carry it (or can order it), and if you live in the more enlightened parts of the US, the natural foods aisle of your local market may carry it.

Another thought: minimize the use of butter by using other oils as much as possible. I use coconut oil, olive oil, macadamia oil and bacon fat extensively (depending on the recipe/flavor profile) and my butter usage since going hunter/gatherer is now 1/3 what it was before.

What quality of butter are you eating? If it's from grain fed cows, cows given hormones, etc... there may be other reasons other than a dairy allergy.

I haven't been able to find grass fed butter in my area so I bought organic.

Yeah, organic butter still comes from grain-fed cows - The grain is just organic.

Try looking for 'pasture' butter, which comes from grass-fed cows. Organic Valley makes one (says it on the label) if you can find it at a local market or natural foods store; Kerry Gold is pasture butter, although the label doesn't state it - it comes from Ireland, and their herds are nearly all pasture-fed. Most supermarkets carry it.