I have never made yogurt, so I may be totally wrong, but it seems like you would need more starter culture. You didn't say how much milk you're using (or I didn't catch it), but 1/32 tsp seems like an impossibly small amount. How do you even measure that?
My only other guess is that since you're not heating the milk very much, the naturally present bacteria dominate and you're getting cottage cheese instead of yogurt. I would be loathe to "cook" raw milk too. Seems like a waste since most of the supposed health benefits come from the fact that it is raw.