In a large skillet, melt butter. Cook onion and celery until translucent. Add to milk and cream mixture.
Combine flour, salt, Tabasco sauce and cold water; blend to a smooth paste. Stir into oysters. Place in skillet over very low heat and cook for about five minutes or just until edges curl, stirring gently.
Pour oysters into milk and cream mixture. Remove from heat; cover. Let stand 15 minutes to blend flavors.