Soak liver in milk. Cook onion in oil until barely tender, stirring frequently.  remove onion and set aside.  Drain liver and dredge in seasoned flour. Coat well.  Fry in oil, until browned on both sides, adding more oil as necessary.  Place layers of fried onions and fried liver in baking pan along with drippings from pan and extra flour if desired.   Pour in water to approximately a depth 1/4 of baking pan.  Cover tighly with foil and bake at 225-250 for 2 hours.  Can also be baked in Crock Pot.  This makes a nice gravy that is good with potatoes, etc. 

From Schowalter Villa Kitchen