Milky is usually water but if it's normal cold and then looks milky after running look very closely and see if it is actually air bubbles you are seeing. Air leaking into oil being pumped in a circuit will froth. A few different causes. Usually leaks (air leaking in not necessarily fluid out) on the suction side of the pump, can also be under filled and drawing air from the reservoir. Sometime just the reservoir design if not totally filled.
Also, the oil will float on the water and may separate after sitting for a while (not my experience but possible), so try draining a little at a low spot to see if there is water. My hydraulic fluid can be drained at the bottom of the rear axle housing.