Bring water to a boil in a large heavy saucepan. Place oysters in boiling water; remove from heat, and let stand 5 minutes. Place oysters in a colander to drain, reserving 1 cup water. Set oysters and water aside.
Melt butter in a large saucepan over low heat; add flour, stirring until smooth. Cook 1 minute, stirring constantly. Stir in salt, pepper, mace, and bay leaves. Gradually add milk and reserved 1 cup water; cook over medium heat, stirring constantly, until mixture is thickened and bubbly. Add drained oysters, and cook 2 minutes. Remove from heat; stir in sherry. Remove and discard bay leaves. Serve immediately over toast.
Oxmoor House Homestyle Recipes