Add lactose with 10 min left in the boil.
I crushed the nibs a little with a cooking mallet in a plastic baggie (you could use a rolling pin), and then I put them in a pot. I just used enough water to cover the nibs. I boiled the nibs in the water for about a minute and a half. I then poured the nibs and entire contents into the fermenter (there is a good soupy extract that's made when boiled and you want to use that also) and I let it sit in the fermenter for two weeks.
Priceless BIAB: 5,11.38,1.35,0,60,153,70,168,0.00,0.07,0.04,1.1,9,13.75,0,0.5,0,95,imperial,2.43,Left Hand Stout Clone,Stout,1.072,3-13,36,100,0.00,1.000,1.000