Could someone recommend software that can achieve requirements below?

Software must have following capability and interact or plug-in to 3DS MAX.

1.  Pouring granule/flour in to cylinder shape to various fill levels.
2.  Mixing of multiple granule/flour colors in cylinder. Think kitchen mixer/paddle blender.
3.  Mixer/paddles would thrust granule/flour into air similar to the way golf club blast sand during bunker shot.
4.  Inject water into granule/flour from spray nozzle.
5.  Inject steam into granule/flour from port/nozzle.
6.  Granule/flour color change from moisture, kneading mixing resulting in dough.
7.  Push dough through hole and cut into small cylinder shape “chunk”.
8.  Shoot spreader spreads chunks on to screen conveyor and dried with heated air.

I have all mechanical models of mixer/blenders, play dough machine, cutters, spreaders, conveyors, forced air flame burners, drying chamber ect.

Cheers

Easytrigger

For the fluids, soft dough mixing, and possibly the flour, you should check out fluid plugins like Glu3D. Link
For the dust blasts, you can use your choice of particle systems in Max: PFlow, Super Spray, etc.
The dough going through the hole, you might want to animate using a combination of things: modifiers, morph targets, etc. depending on how you want it to look. You can also try reactor soft bodies or the flex modifier more towards the end when it is more solid. Or you may want to keyframe your animation more towards the end.

Just some thoughts.

3ds Max 2009 SP1, 2010 SP1
Maya 2012
Windows 7 Professional 64-bit
Dual Intel Xeon E5520, 6 GB Ram
NVIDIA GeForce GTX 460 OC

Can you expand on “keyframe animation towards the end”?

By keyframe, I mean you probably won’t have a plugin that will do the parts towards the end. Mostly when it becomes almost solid in the dough form. You could use modifiers (FFD, morph targets, etc.) and you would have to keyframe every so often until you get the desired effect. Morph targets may be the way to go for you and animate between the various stages with good control over the form. The shooting part at the very end, you may be able to use particles again with blobmesh (or metaparticles in superspray) to shoot out chunks.

This isn’t a very straight forward or easy project and might take some compositing to get a nice finished animation. But there’s pretty much always a way to make things in 3D.

3ds Max 2009 SP1, 2010 SP1
Maya 2012
Windows 7 Professional 64-bit
Dual Intel Xeon E5520, 6 GB Ram
NVIDIA GeForce GTX 460 OC