Approach: Pick convenient amounts that respect the $2:3$ mixing ratio, total the sugar, then halve for the final milk dilution.
Step 1: In mixture A, sugar is $\frac{2}{3+2}=\frac{2}{5}$ of the whole; in mixture B, sugar is $\frac{3}{7+3}=\frac{3}{10}$ of the whole.
Step 2: Take $2$ litres of A and $3$ litres of B (ratio $2:3$), giving $5$ litres of C. Sugar $=2\times\frac25+3\times\frac3{10}=0.8+0.9=1.7$ litres.
Step 3: So C is $\frac{1.7}{5}=34\%$ sugar.
Step 4: Mixing equal quantities of C with sugar-free milk halves the concentration: $\frac{34\%}{2}=17\%$.
Answer: The final mixture is $17\%$ sugar.