I love using honey. Personally I do not put it in my water or milk, if I understood kchaystack, that is what I do. I put in with my oils no more than 1 tablespoon per pound. But then you can not soap too hot, as it can scorch. Since you are using milk, you already have that to worry about. It can also turn your milk brown if the sugar burns. JMHO.
If you are doing CP, you can also put it at the end after your batter is ready, and it will become part of the soap as it cures.