The idea is simple:
What you're left with is a cartoon-ish, chunky liquid. Use the controls to see the components of this process.
The most computationally intensive step is blurring the raster. Convolution is expensive, O(n^2), and it's being done by the CPU here, rather than the GPU. To run at full speed, you need a nice computer.
See the Git repository for full source code listing.
Original idea: How to simulate liquid