Dairy World is an unshown location in The Fairly OddParents! universe.
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Not much is known about Dairy World except that it exists. In A Mile In My Shoes, Timmy, trying to get to Fairy World, accidentally ends up in the wrong world twice, due to his inexperience with magic. During his brief trip to Hairy World, a cow with wings, a crown, and a wand (all similar to a Fairy Godparent's equipment), also ends up in the same world, looking for Dairy World.
When Timmy finally ends up in Fairy World, the same cow shows up again, still looking for Dairy World.
At the end of the episode, Timmy returns home to Cosmo and Wanda, and the three agree to resume their original roles. Timmy tries to grant the wish, but instead he turns the three of them into cows. The cow looking for Dairy World poofs into Timmy's room, notices cow-Timmy, cow-Cosmo, and cow-Wanda, and believes that he finally found Dairy World.