At this point, you don't know if there is water contamination of the fuel or not.  We're all guessing that it's dyed diesel, but none of us knows exactly what it is, or if it's contaminated.

That being the case, dispose of the fuel in the tank, rinse a couple of times, replace the wick with one from Miles Stair (don't forget to get a spare), and clean up the thing while you're waiting for the new wicks.  Wait till new wicks arrive before removing the old wick, so things are fresh in your mind when  replacing  wicks.  Follow installation instructions closely, fuel up, and fire it off.  I would put just enough fuel in it to get the new wick working, give it a test run, and burn off the little remaining so you can store it dry.  YMMV.

What youreally need to do is find a gas station that sells K1 white Kerosene at the pump.  If you have to buy by the gallon can, the cost of fuel skyrockets.   Once you do that, buy some BLUE (for Kero) 5-gal plastic fuel cans, and one 2 gallon BLUE Kero can.  Clearly label them KERO anyway.  You will want a hand pump, or at least a funnel that will stay in place when you fill the 2 gallon can from the 5 gallon cans (outside the house), and when you use the 2 gal can to fuel the heater.  I'm no expert, but that 10 gals might last a week or a bit longer if running the heater 24/7.