Milotic works well as a Defensive Pokemon:
Milotic @ Leftovers
Scald
Ice Beam
Recover
Dragon Tail
Scald inflicts burn status. Ice Beam can be replaced with Blizzard for more power, but in my opinion, Ice Beam's accuracy works out better. Recover is self-explanatory. Dragon Tail to remove Pokemon you don't want to deal with, or after you inflicted them with a burn and want to wreak more havoc on the other members of your team.
You could run Rest instead of Recover to activate Milotic's ability, but with the lack of Sleep Talk, I wouldn't recommend it.
If you would rather poison your opponent, replace Scald with Toxic. In addition, you could replace Ice Beam with Surf for STAB.
If you would rather run an Offensive set:
Milotic @ Life Orb/Wise Glasses
Hydro Pump
Blizzard
Recover
Aqua Ring/Dragon Pulse (EM)/Hidden Power(as long as it's not water or ice, as that would be redundant)
