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Drain oysters thoroughly; reserve liquid. Add enough milk to liquid to make 2-1/2 cups.
Melt Crisco in a large skillet, add mushrooms and green pepper, and saut? for 5 minutes. Sprinkle flour, salt, pepper, and nutmeg over mushrooms; stir to coat evenly. Add milk and oyster liquid gradually while stirring. Cook over medium-high heat, stirring constantly, until sauce boils and thickens. Gently mix in oysters and pimiento.
*If fresh oysters are used, heat them in their liquid just until edges curl.