I have tried alternately watering down the milk and reducing the amount several times over the past 6 months or so and neither were successful so I always gave up and tried again a bit later. I didn't want to force it.
With reducing the amount she would cry wanting more as soon as the bottle was finished, with watering it down she was ok by just an oz but as soon as i watered it down by any more than that she would go to bed ok but then wake an hour or two later wanting more milk.
I kept trying though because I was confident that one day she would be ready. In the end i decided the watering down option would be more successful for us, based on the fact that she would at least go back to bed after drinking that, rather than crying wanting more as soon as she had drunk it.
This time, for whatever reason, i was able to water down the milk to just 3 scoops in 6oz water and from there to stop completely. I decided not to give her a bottle of just water as she tends to drain a bottle and i didn't think this would help break the habit (having established through reducing the milk that it wasn't hunger waking her) so offered her water in case she was thirsty, but in a beaker instead of bottle.
The night I first didn't give her any milk she woke as usual, i went in to her, picked her up, sat down with her and gave her the water. She drank some of it, but then pushed it away and popped her dummy back in. She did sit up and look for the bottle but when she saw it wasn't there was fine and snuggled in to me-maybe she had understood when i told her she wouldn't be having milk cos she did seem far more accepting than i was expecting! I then just cuddled her for a while and put her back in bed and she was fine although she did wake up earlier than usual. Once i'd changed her nappy and given her morning milk though she was happy to stay in her cot for another hour.
She is teething at the moment so that is making her more restless than usual, but even so she hasn't demanded milk, and hasn't really been any worse than when she has been teething before.
It's still fairly new but we do seem to be being successful, at least as far as cutting out the night feed is concerned. She is still waking, and i am still having to go in to her at least once (usually 3 times)a night but hopefully she'll cut down the waking soon too.
It does seem to be taking her a little longer to settle than when i was giving her milk (which was drink bottle, back into cot, straight to sleep), and she often seems to be dozing off then waking an hour or so later so it is taking her a while to get used to not having that tummy full of milk in order to sleep but i am now confident (which i havent been until now) that she isn't actually hungry, just that the full tummy helped her sleep. i hope that makes sense, i don't seem able to explain it! Anyway, one of the reasons i am confident that she isnt hungry is that she doesn't seem desperate for her milk when she wakes in the morning, which i think she would be if she had been hungry since 2 or 3 am.