In a large pot, combine evaporated milk, whole milk, water, and butter. Heat over medium until butter melts.
Bring mixture to a gentle boil. Turn off heat and let rest 30 minutes.
Add oysters with their liquor. Stir gently.
Simmer on low for 4–6 hours, stirring occasionally.
Season with salt, pepper, and hot sauce.
Serve hot with saltine crackers.
Notes
- Keep heat low to prevent curdling.
- Add oysters only after the rest stage.
- Do not freeze; dairy separates.
- Oyster stew should be brothy, not thick.