Immiscible liquids. Oil and water can be separated using a funnel. Immiscible means that the liquids don't dissolve in each other – oil and water are an example. It is possible to shake up the liquids and get them to mix but they soon separate. Separating immiscible liquids is done simply using a separating funnel. The two liquids are put into the funnel and are left for a short time to settle out and form two layers.