Milky Varnish

Your varnish has not dried totally clear? It is cloudy? Then the simple answer is that it is not dry underneath. Water based varnishes dry incredibly quickly. If you put them on too thickly the top layers of paint will be dry to the touch. You think it is time for the next coat and away you go. The trouble is that layers of varnish under the top layer have not dried. The moisture has not had a chance to evaporate properly and now there are more layers on top preventing this process from taking place. The first step is leave it for a few weeks and see if in curing the varnish clears. If not sand it back with a piece of 1200 wet and dry sand paper and sand with a little water. Let this dry thoroughly and start over. Avoid the problem this time by applying thin layers and allowing the varnish to be really dry. the time depends on the actual varnish you are using so read the manufacturers instructions and follow them carefully.