1. Pour oil to a depth of 3 inches into a Dutch oven; heat to 360º. Whisk together milk, egg, and 1/4 cup water in a large bowl.
2. Rinse oysters, and pat dry. Sprinkle oysters with seasoned salt. Dredge oysters in flour; dip in milk mixture, and dredge in flour again. Fry oysters, in batches, in hot oil 2 to 3 minutes or until golden brown. Serve immediately.