Cook over low heat, stirring until mixture is smooth and bubbly. Remove from heat. Stir in milk. Heat to boiling, stirring constantly. Boil and stir 1 minute.

Prepare a thick white sauce. Stir in meat. Season with salt and pepper.

Spread mixture in an ungreased square pan 8 x 8 x 2 inches. Cover; chill 2 to 3 hours. Divide mixture into 12 equal parts; shape each into an egg shape. Beat egg and water until blended. Dip each into egg mixture, then roll in bread crumbs until completely coated. Cover croquettes; chill at least 2 hours.

Heat oil (3 to 4 inches deep) to 365°F in a deep fat fryer or kettle. Fry croquettes in hot oil 1 1/2 to 2 minutes or until light brown. (Handle croquettes carefully so crust is not punctured). Drain on paper towels.

Keep croquettes warm in a 350°F oven until serving time. Serves 6.