The technological development for efficient nutrient removal from liquid dairy manure is critical to a sustainable dairy industry. A nutrient removal process using a two-step fed sequencing batch reactor (SBR) system was developed in this study to achieve the applicability of simultaneous removal of phosphorus, nitrogen, and chemical oxygen demand from anaerobically digested liquid dairy manure (ADLDM). Three operating parameters, namely anaerobic time:aerobic time (min), anaerobic DO:aerobic DO (mg L-1), and hydraulic retention time (days), were systematically investigated and optimized using the Taguchi method and grey relational analysis for maximum removal efficiencies of total phosphorus (TP), ortho-phosphate (OP), ammonia-nitrogen (NH3-N), total nitrogen (TN), and chemical oxygen demand (COD) simultaneously. The results demonstrated that the optimal mean removal efficiencies of 91.21%, 92.63%, 91.82%, 88.61%, and 90.21% were achieved for TP, OP, NH3-N, TN, and COD at operating conditions, i.e., anaerobic:aerobic time of 90:90 min, anaerobic DO:aerobic DO of 0.4:2.4 mg L-1, and HRT of 3 days. Based on analysis of variance, the percentage contributions of these operating parameters towards the mean removal efficiencies of TP and COD were ranked in the order of anaerobic DO:aerobic DO > HRT > anaerobic time:aerobic time, while HRT was the most influential parameter for the mean removal efficiencies of OP, NH3-N, and TN followed by anaerobic time:aerobic time and anaerobic DO:aerobic DO. The optimal conditions obtained in this study are beneficial to the development of pilot and full-scale systems for simultaneous biological removal of phosphorus, nitrogen, and COD from ADLDM.