Milk before bed can be a great option for many families. Children should not be drinking more than 16oz of milk a day. Make sure you brush your teeth or at minimum rinse with water before bed. Cavities from milk mostly come from kids who walk around all day with bottles or sippy cups full of milk.
For wake up issue, include a snack with milk before bed. Great bed time snacks include cheese and cracker, peanut butter toast, pb and j, or fruit and cheese stick. Basically a snack with fat and protein! This will help keep a child full through the night.