Is it recommended to keep the baby on a formula for longer and delay introduction of cow's milk if there is known history of lactose intolerance in the family?

I think yes the best strategy is to prevent early exposure to food that you are certain your child will react to. Aside from fact of lactose intolerance in your family medical history, cow's milk is also undesirable because it has high casein* content that is hard to digest especially with infants whose system isn't prepared enough to handle high levels of nutrients such as these. Also, infant formulas provide a more healthy diet to your baby. **Casein: the main protein present in milk and (in coagulated form) in cheese. https://www.nlm.nih.gov/medlineplus/ency/article/002448.htm http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2791650/

Lactose intolerance is very rare in newborns and usually develops only in teen years. Formulas also contain lactose as they are usually made of cows milk so keeping a child on formula vs whole cows milk will not help with lactose intolerance if your kid has it. I'd first try regular cows milk and observe symptoms - diahorrea or constipation, throwing up, gassiness or fussiness. If your child does demonstrate these, try lactose free formula or soy milk.

Better to stay on the safe side and check with your PD when your baby can start on cow's milk based on his and your family's medical history. Aside from lactose intolerance, there are other risks like iron deficiency anemia. See them here: http://wholesomebabyfood.momtastic.com/milkforbaby.htm