In a saucepan over medium heat, add butter and heat just until melted. Add the shallots and cook for 3 minutes just until soft and translucent.

Add the oysters and all of the liquor. Cook under medium low heat until it comes to a sight simmer. Add the milk and heat until warm. Take 2 tbsp of the warm milk and mix it into the flour. Add the mixture to the pot and bring to a simmer.

You'll know the oysters are cooked once the edges begin to curl. Season with salt and pepper and serve.