There is a procedure to "Boil" out the milky oil. It is a bit detailed to reprint all the information in the forum. Having the manual is the best $10.95 investment you could pay to subscribe here or go the seadoo dealer and spend $85.00 for a manual. If you have water in your oil, you need to act fast as it is doing bearing damage as we speak. Finding the source to the water problem is key also. It could be a cracked case, cooling line...ect. The manual will have all the information to help check the problem too. We can recommend you try different things but we cant see the engine or do different tests to solve it. Either you get a manual to solve it yourself or bring it somewhere to have it checked out. Either way, don't wait days or weeks to get it solved. Your engine will be scrap.
Karl