Spirits in Italy.

I have seen spirits in the supermarkets in Italy - cannot remember any particular brand.

At any of the many wine and liqueur, grocery stories, etc. Not a lot different than buying in the US. You see duty free shops only when leaving the country - not entering the country.

If you want to buy a duty free bottle, you'll want to get it at the airport from which you leave the US. I'm not aware of any European airports that have duty free stores on arrival. This can be tricky, though, if you have a connecting flight and you have to go through security again.

If you have a connecting flight and have to go through security again, you will lose the bottle for sure.
Spirits in Italy are not expensive. A bottle of vodka is about 12 euro. Can’t comment on whisky.

Every supermarket has a wine and spirits section.

There are duty free shops in arrivals in many airports in Europe however I don't recall one in Milan. You'll be able to buy it in the supermarket but I'd just buy it at the airport you're flying from to save the effort of finding it in Italy.

Switzerland has duty free on arrival at airports. I know of no other countries that do, the EU definately does not have duty free on entry .
You buy duty free at the airport you leave a country from.

Italy has lots of local spirits to taste.

It's not rocket science. Any grocery store or supermarket has spirits. Naturally, the bigger the store, the bigger selection. Italians tend to like single-malt scotch and rum, but there's a lot to buy here. We even found Maker's Mark bourbon for our daughter's boyfriend.

I know of no other countries that do, the EU definately does not have duty free on entry .

Some that immediately spring to mind are Malaga airport, Bucharest, Prague and of course Heathrow.

Whether the prices are actually duty free (all the shops are referred to as duty free shops) is another matter.

I wouldn’t bother to carry anything while traveling. You can find whiskey at any stores.
Ballantine, Chivas Regal, J&B, Johnnie Walker, Jack Daniel, and even Jim Beam Kentucky Bourbon, are sold anywhere. Scotland is closer to Italy than to the US, and both are in the EU (at least for now).