I just watched the Blender Guru video How to Make a Beer in Blender and stopped at the point where it advises us to make the liquid slightly larger in diameter than the inner diameter of the glass - approximately half way between the inner and outer walls.
I then turned to Fluid in a Glass (and why you’ve been doing it wrong your whole life) where the video points. Although the wording there isn't exactly correct, I think that I understand the point. In the glass shader where you specify IOR, you are not actually specifying the index of refraction of the material inside the volume defined by the mesh. You are actually only specifying the ratio of the index of refractions of the spaces on either side of the mesh. And that's all that Snell's Law actually needs when applied to a single interface:
$$ \mathbf{n_1} \sin(\theta_1) = \mathbf{n_2} \sin(\theta_2) $$
$$ \sin(\theta_1) = \frac{\mathbf{n_2}}{\mathbf{n_1}} \sin(\theta_2) $$
$$ \theta_1 = \sin^{-1}\left(\frac{\mathbf{n_2}}{\mathbf{n_1}} \sin(\theta_2)\right) $$
The problem is that in the physical world, the interface between liquid and glass has a very small index difference - the ratio is nearly 1.0. This is why some transparent object can seem to almost completely disappear when submerged in water.
But it seems to me that the workaround of embedding the liquid into the glass is not going to have the desired effect - if the desired effect is to get closer to a realistic image. It creates two interfaces and each has a large ratio of indices of refraction of something like 1.3 or 1.4, or 1/1.3 and 1/1.4 depending on the directions of the normals.
Question: Wouldn't embedding the liquid inside the glass wall as described in the video produce physically wrong and unrealistic refraction? Since there is just one interface, using two meshes that just touch, or overlap seems like it's just asking for trouble. From a rendering point of view, meshes are interfaces between physical materials, even though we say that we assign "materials" to them we're actually assigning surface characteristics.
edit: I've just found an excellent explanation here, yes the IOR < 1
technique should be correct and a single mesh for the glass-liquid interface used.
I'll use an index of refraction of 1.4 and 1.3 for glass and liquid respectively in the following discussion just to make it simpler.
Wouldn't a more realistic method be to just use a single mesh for the boundary between glass and liquid, and choose IOR = 0.93
with the normals pointing out, or IOR = 1.08
with the normals pointing in?
That doesn't mean that there is an actual index of refraction is 0.93, it just means that when rays pass between the space inside the glass mesh and the space inside the liquid mesh they will be refracted and (Fresnel) reflected based on the correct physics for a single interface between materials within indices of refraction of 1.4 and 1.3?
note: This would require the top of the liquid to have a different mesh or at least a different material, with the IOR set to 1.3 for the correct liquid-air interface behavior. Or you could just put foam on top.