PLACE potatoes in large saucepan. Add enough water to cover potatoes. Bring to boil on medium-high heat. Reduce heat to medium; simmer 15 min. or until potatoes are tender. Drain.

MEANWHILE, mix cream cheese product, milk and pepper in large microwaveable bowl. Microwave on HIGH 40 to 50 sec. or until cream cheese is melted; stir until well blended. Stir in dill.

ADD potatoes; toss to coat.