Weak, devoid of energy. The use appears to have originated in the U.S.
1783. Change the milk-and-water style of your last memorial; assume a bolder tone.Journal of Congress (1823), iv. 209. (N.E.D.)
1793. [The federalists say] that our government is good for nothing,is a milk and water thing which cannot support itself; we must knock it down, &c.Tho. Jefferson, The Anas, Aug. 6.
1810. Nor can any milk and water associate [judge] maintain his own dependance [sic].Tho. Jefferson to Gov. Tyler, May 26.