Rob Cooper's Nittany Lions opened the weekend with a 5-2 win in Bloomington, but fell to the Hoosiers 5-2 and 10-2 on Saturday and Sunday.
With the team's previous best finishing coming in 2001 when it took third, the Nittany Lions scored more than 100 points for the first time on the way to their first-ever Big Ten indoor or outdoor title.
Missy Doherty's Nittany Lions (16-3) opened up a quick 8-1 lead over the Dukes, but would need a clutch showing to hold off the rally and advance.
The Nittany Lions are still winless in NCAA Tournament action, having lost in the first round of each of their four appearances.
Forget Wheaties, according to Mark Hall, pouring milk before cereal is the true breakfast of champions.
Penn State couldn't make a repeat trip to the Big Ten semifinals as Breanna Wonderly and Illinois dispersed Nittany Lion batter after batter in a 3-0 result.