Pickled Herring

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3 to 4 whole salted herrings

2 cups milk

1 1/2 cups water

1 cup white sugar

1 cup white vinegar

2 teaspoons ground allspice

2 teaspoons yellow mustard seeds

1 teaspoon caraway seeds

2 teaspoons whole black peppercorns

2 teaspoons whole white peppercorns

1 small red onion, sliced in rings

2 carrots, cut in thin slices

2 handfuls fresh dill

2 bay leaves

2-inch piece fresh horseradish, cut in big slices