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Thanks guys, I read the following some place - I find the concept very difficult. 'The possessive pronouns are identical to possessive adjectives, except that they must be preceded by the definite article(o meu, a minha, os meus, as minhas, etc.) For the possessive adjectives, the article is optional, and its use varies with dialect and degree of formality.' Presumably the difference between the pronoun and the adjective is that the pronoun will be used INSTEAD of and in the absence of the noun? :/ ..
The present continuous only applies in the present. "He is drinking your milk" would only apply for someone who was currently drinking it. On the other hand, "He drinks your milk" is correct for someone who does drink your milk on a regular basis, but isn't doing it right now.
That's why you can say "He goes to school" about a student who is on holiday and thus obviously not currently in school. So no, it is not equally correct. "He drinks your milk" and "He is drinking your milk" mean different things.