Melt butter over medium heat in a heavy-bottom 3-quart saucepan.

Add diced onion and sauté until tender, about 5 minutes.

Add garlic and continue to sauté for another 1-2 minutes, being careful not to burn the garlic.

Stir in ground red pepper, paprika, salt, and black pepper. Continue to stir for about 1 minute to toast the seasonings.

Drain oysters and reserve liquid (oyster liqueur).

Reduce heat to low, add milk, parsley, and oyster liqueur.

Cook over low heat until the mixture is hot and beginning to steam, and bubbles just start to appear around the edge. Do NOT allow to come to a boil.

Add oysters and continue to cook over low heat for just a few minutes until oysters begin to curl on edges.

Salt and pepper to taste. Serve warm.