I didn't use a merge shader. I used the ice shape pf to blend one surface layer into another, one with 'invert blendshader' switched on, so that it masks the oposite of the other. A nice aspect of this, is that it can make a nice mix between slightly transparent ice or hard edged depending on the contrast used in the PF. I didn't use any of the wave settings, I turned this page all to zero in the node. The water shader ice, I played with the volume density and colour, as well as the decay distance. The below examples were some quick sketches and need a lot of refinement to get to look right, but I believe it quite possible to come up with something very convincing. Be carful on how much you displace the ice surface layer (plugged into the original shape PF), as this did add loads to the render time. Might be worth turning everything else off whilst you refine this technique.
Anyway, hope it's of some use. I might have to play with this some more, time willing.
Cheers
Jon
*** EDIT *** in the node picture layout below, the "Clear Water Surface Layer" should be plugged into the "Ice Surface layer" input. Sorry about that.