Using a double boiler, add water to the lower part.
Bring water to a boil using moderate heat.
In upper part, add the milk and cream.
Reduce heat to low and simmer.
In a saucepan at moderate heat, place oysters with their liquid and add the 1/2 cup water.
Simmer oysters until they become plump and edges begin to curl.
Skim the oysters from the saucepan and add to the milk mixture.
Keep the remaining water and oyster liquid.
In a sauté pan set to moderate heat, melt butter and add salt and pepper.
Using a strainer, pour in the oyster water/liquid and stir.
Add this to the Oyster Stew in the double boiler.