For the sweet lime yogurt: Mix together the yogurt, sweetened condensed milk and lime zest and juice in a medium bowl. Cover and refrigerate until ready to serve.
For the fruit cocktail: Add the lime zest and juice to a pitcher with the sugar and 1 cup water. Stir until the sugar dissolves--you'll know this has happened when the liquid turns from cloudy to clear.
Add the mango, papaya, grapes, maraschino cherries, pineapple and melon to a large bowl. Gently mix the fruit with some of the lime syrup, adding more until it is as sweet as you would like it. (The lime syrup will keep for 1 month refrigerated.)
Serve with the sweet lime yogurt.
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