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1
Preheat oven to 375u00b0F with rack in middle.
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2
Arrange bread in 1 layer in a shallow dish and pour milk over it. Soak bread, turning once, just until it has absorbed most of milk, about 2 minutes. Squeeze excess milk from each slice, then tear bread into bite-size pieces, dropping them into a bowl. Discard milk.
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3
Melt 1/2 stick butter and add to bread along with livers, 1/2 teaspoon thyme, 1/2 teaspoon salt, and 1/4 teaspoon pepper, stirring to combine.
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4
Rinse squabs and pat dry. Chop off necks and wing tips and scatter in a large shallow baking pan. Divide stuffing among cavities of squabs, then close openings with wooden picks. Tie legs of each squab together with string and secure wings to sides with wooden picks.
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5
Stir together 3/4 teaspoon salt, 1/4 teaspoon pepper, and remaining 1/2 teaspoon thyme and rub all over squabs.
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6
Arrange squabs in baking pan (with necks and wing tips), without crowding, then cut remaining stick butter into 8 pieces and put 2 pieces on top of each bird.
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7
Roast, basting with butter from pan every 8 to 10 minutes, until an instant-read thermometer inserted into fleshy part of a thigh (do not touch bone) registers 160u00b0F, about 1 hour.
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8
Transfer squabs to a platter and let stand, loosely covered with foil, while making sauce. Discard necks and wing tips and pour pan juices into fat separator. Let stand 1 minute to allow fat to separate from juices. Add water (1/2 cup) to pan and deglaze by boiling, stirring and scraping up brown bits, 1 to 2 minutes. Transfer to a small saucepan along with pan juices and 1/4 cup fat from separator and simmer, whisking, until emulsified, about 1 minute. Serve squabs with sauce on the side.
