Water is a liquid. The water and starch are a suspension known as a colliod. A colliod is a material that consists of one substance suspended within one another. The suspended material is comprised of particles so small that they don't sink to the bottom of the second substance. Together, the two materials display properties unlike those of their separate components.
Matter exists in three states solids, liquids, and gases.
However there are many materials that consist of one substance that doesn't conform to these neat designations. Such as fog, protoplasm, homogenized milk, synthetic rubber, and mayonnaise which are all colliods. Hold up your hand close to your mouth, and breathe through your mouth. The warm air you feel on your hand is matter. Touch the tip of your finger to your tongue.