Dairy waste is a complex mixture of nutrients requiring an integrated strategy for valorization into various products. The present work adds insights into the conversion of fat-rich dairy products into biomass, glycerol, and fatty acids via submerged cultivation with edible filamentous fungi. The pH influenced fat degradation, where Aspergillus oryzae lipase was more active at neutral than acidic pH (17 g/L vs. 0.5 g/L of released glycerol); the same trend was found during cultivation in crème fraiche (12 g/L vs. 1.7 g/L of released glycerol). In addition to glycerol, as a result of fat degradation, up to 3.6 and 4.5 g/L of myristic and palmitic acid, respectively, were released during A. oryzae growth in cream. The fungus was also able to grow in media containing 16 g/L of lactic acid, a common contaminant of dairy waste, being beneficial to naturally increase the initial acidic pH and trigger fat degradation. Considering that lactose consumption is suppressed in fat-rich media, a two-stage cultivation for conversion of dairy waste is also proposed in this work. Such an approach would provide biomass for possibly feed or human consumption, fatty acids, and an effluent of low organic matter tackling environmental and social problems associated with the dairy sector.