A liquid dispenser includes a first liquid supply that provides a carrier liquid under pressure that flows from the first liquid supply through a first liquid supply channel through a liquid dispensing channel through a liquid return channel and back to the first liquid supply continuously during a drop dispensing operation. A second liquid supply provides a functional liquid to the liquid dispensing channel through a second liquid supply channel. A drop formation device, associated with an interface of the second liquid supply channel and the liquid dispensing channel, is selectively actuated to form a discrete drop of the functional liquid in the carrier liquid flowing through the liquid dispensing channel. The functional liquid is immiscible in the carrier liquid. A drop ejection device is selectively actuated to divert the discrete drop of the functional liquid and a portion of the carrier liquid flowing through the liquid dispensing channel toward the outlet opening of the liquid dispensing channel.