Water and cyclic ether do mix because a cyclic ether has a strong dipole and is polar. The rule for miscibility is like dissolves like. So, polar water is miscible with polar cyclic ethers.
In organic lab we used THF (Tetrahydrofuran) which is a cyclic ether for the grignard reaction and the problem with it was that it would even absorb water vapor from the air and the R-MgBr would react with both the water and the ketone reactant.