You would use Fume for Smoke/steam since its a hot liquid, the morphing would be handled with standard operators in Particle Flow more than likely. You could probably use it for water but there are better tools in Particle flow for that as well as other plug-ins like realflow. Now that I think about it RealFlow might have…
Maybe this could help http://www.blendercookie.com/2010/03/29/introduction-to-fluid-simulator/ There are several tutorials of showing how to use particles too.
Blender is capable of doing this but I have personally never tried it. Your best bet is to go on Blenders main site and ask their forum goers for help if you need it. Or you could try figuring it out via this tutorial on Blenders fluid system, which happens to show a fluid in a teacup.…