In the initial mixture, the ratio of milk to water is 4 : 1. This means in 35 litres of mixture, the quantity of milk and water is:
\[
\text{Milk} = \frac{4}{5} \times 35 = 28 \text{ litres}
\]
\[
\text{Water} = \frac{1}{5} \times 35 = 7 \text{ litres}
\]
Step 1: When 7 litres more water is added, the total amount of water becomes:
\[
7 + 7 = 14 \text{ litres}
\]
Step 2: The new ratio of milk to water is:
\[
\text{Milk} : \text{Water} = 28 : 14 = 2 : 1
\]
Thus, the new ratio of milk and water is 2 : 1.