Concept:
- Instead of deriving a general formula, assume a convenient concrete starting volume for the milk, one that stays a whole number every time it is divided by 3, such as $81$ litres (since $3^4=81$).
- Track the actual volume of milk, not a fraction, through each of the four rounds directly, removing $\dfrac23$ of the current mixture each time and topping up with water back to the original volume.
Step 1: Choose a convenient starting volume and do round 1.
Start with $81$ litres, all milk. Removing $\dfrac23$ of the mixture removes $54$ litres of milk, leaving $27$ litres of milk; topping up with $54$ litres of water restores the volume to $81$ litres (milk $=27$, water $=54$).
Step 2: Round 2.
Milk is now $27$ out of $81$ litres. Removing $\dfrac23$ of the $81$-litre mixture removes $\dfrac23\times27=18$ litres of milk, leaving $27-18=9$ litres of milk. Topping up with water restores the total to $81$ litres (milk $=9$, water $=72$).
Step 3: Round 3 and round 4.
Round 3: milk is $9$ out of $81$; removing $\dfrac23\times9=6$ litres of milk leaves $9-6=3$ litres of milk (milk $=3$, water $=78$).
Round 4: milk is $3$ out of $81$; removing $\dfrac23\times3=2$ litres of milk leaves $3-2=1$ litre of milk (milk $=1$, water $=80$).
Step 4: Read off the final ratio.
After all four rounds, milk $=1$ litre and water $=80$ litres out of the original $81$ litres.
Final Answer: Milk : Water $=1:80$