Abstract: A method for producing a delivery system for transporting pharmaceuticals and other ingredients in a chewable and palatable form is provided. The delivery system comprises a lipid source in which drug actives are homogeneously suspended to form a high solids suspension which can be solidified and molded into an oral dosage form. The lipid source provides an external phase comprising the carrier for the suspension and also provides a hydrophobic film which continuously coats the hydrophilic drug actives and other ingredients. The suspension exhibits pseudoplastic and thixotropic properties which enable it to suspend a large volume of particles relative to the lipid source. The drug particles may be pre-encapsulated before mixing in with the suspension, which provides taste-masking and controlled release qualities to the products formed from the delivery system.