The most important factors in preparing Oyster Stew; not boil the milk and do not overcook the oysters. Be careful to avoid overcooking oysters, which causes them to become tough.
Drain the oysters, reserving their liquor. I like to strain the oyster liquor with a fine strainer to remove any sand.
In a large pan over medium heat, melt butter. Add oysters and simmer very gently for about 2 to 4 minutes or until the edges of the oysters curl.
While the oysters are simmering, in a separate saucepan over low heat, slowly heat the milk, cream, and the strained oyster liquor (do not boil).
When the oysters are cooked, slowly add the hot milk mixture to the oysters, stirring gently. Season with Tabasco, salt and pepper. Remove from heat.
Serve in warm soup bowls and garnish each bowl with parsley, chives, or green onions and a generous pat of butter.