milky looking water coming from hot water heater

The water is probably just oxygenated, not a problem. Our city water gets that way a few times a year, cloudy but clears up if it sits. As long as it tastes ok it's prob fine although ours is the cw right out of the faucet. You might flush the water heater out too, it may have some mineral buildup although that would probably not clear up on its own.