In this research article, response surface methodology (RSM) based optimization of three production parameters namely temperature, time and amount of starter culture of Vechur cow milk yoghurt (VCMY) on the basis of sensory evaluation responses comparing cross-bred cow milk yoghurt (CCMY) as the control is reported. The optimized values of production parameters were 2.15 per cent rate of inoculation, 42°C incubation temperature and 4 h incubation period. The optimized product exhibited significantly lower syneresis, a*, b* values and higher L* values than CCMY. Physico-chemical, microbiological, textural and sensory properties of both VCMY and CCMY during room temperature and refrigerated storage were assessed daily until the onset of spoilage (room temperature) or at five day intervals over a period of 15 d (refrigerated). Both room temperature stored products were graded undesirable by the sensory panel upon one day of storage. Significant reduction was observed in the fat, SNF, total solids, protein and pH content and all the tested colour parameters of the optimized product during refrigerated storage. Total viable counts as well as yeast and mould counts and lactic acid bacteria counts of both VCMY and CCMY progressively increased over the 15 d of storage. Significant reductions were observed in the flavour (P < 0.01), body and texture, colour and appearance and overall acceptability (P < 0.05) scores of both the samples over a period of 15 d. During storage, hardness and adhesiveness values showed an increasing trend whereas the cohesiveness showed a decreasing trend. Storage studies revealed significant differences in the acidity, pH, syneresis, tyrosine value, colour parameters and sensorial attributes of both the yoghurt samples. During the 15 d refrigerated storage period, the VCMY exhibited superior technological attributes to CCMY in terms of lower syneresis %, acidity, microbial population, firmer and less cohesive texture, better flavour, colour and appearance scores. Being the first comprehensive study on the utilization of Vechur cow milk for the preparation of yoghurt, the data generated in the current study would provide a solid base for the exploration of fermentation as a means of value addition of milk of this very rare indigenous cattle breed.