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.

Tiny air bubbles. Will probably pass on it's own.

As posted......source water is saturated with air which comes out of solution when heated.

To test; fill a glass with the hot water, if it clears from the bottom up then it is just air bubbles in the water.

If the opposite happens (clears from top down) it could be sediment in the water. Which you should see on bottom of glass.

Is your water heater a Suburban with anode rod?

Just made my coffee with a pot of that! We use the RV about monthly and it's common for it to do that right after we hook up. Our WH is a Suburban, but I've noticed the cold water will do this too.

I have only seen that for awhile after sanitizing and/or de-winterizing. It always clears up with a little use. Seems I usually get at least a tiny bit of antifreeze in the water heater. It hasn't happened to me except after these maintenance actions.

I am with the rest of the guy's, water is oxygenated, air bubbles.

Old-Biscuit gave you the perfect test.

Old-Biscuit, it is an Atwood heater, no sediment in glass. Water just dis-colored when coming from faucet. Thanks to all who answered. I now have to keep this quite from wife , as that is what she said it was.