Milk won’t neutralize your stomach acid, and it’d be less than great if it did because your stomach needs that acid to perform its functions.
What it does do is:
1) dilute the stomach acid with a weaker acid
2) coat the lining of your stomach with protein and fat to prevent the acid from directly touching your stomach tissue
3) bind with any capsaicin that may be in your stomach and help that move through your system rather than lingering
Water can also do the first but without the latter two it isn’t nearly as effective, and without protein and fats the water moves past your stomach a lot more quickly as well.
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