Loose forward Milner comes in for Sean O’Loughlin, the Wigan Warriors and England captain who suffered a calf injury in last Saturday's first Test victory in Hull.
Milner, 26, made his debut in the 44-6 win against France last month and is the only change to Wayne Bennett’s 19-man squad.
Meanwhile, St George-Illawarra prop Graham, the most-capped player in the England squad with 42, takes over from O'Loughlin.
The former St Helens star has led his country before and will now bid to help England clinch the series at Anfield.
England 19-man squad: Bateman, G Burgess, T Burgess, Clark, Connor, Gildart, Graham, Hill, Hodgson, Lomax, Makinson, McGillvary, Myler, Milner, Percival, Thompson, Tomkins, Whitehead, Williams.