I always wanna do this, I bought the parts already, but haven't started it yet.
I got the idea from another forum.
I use clear plastic tube (can be found in fish tank stores), I think the diameter is 1/4in. It fits DIP LED perfectly. So at one end, glue/seal the end using silicone seal and LED as a plug. Then pour water mixed with highlighter pen liquid (just a small mix). Seal the other end with the same technique, and make sure no bubbles trapped. Blue LED will give better "glow" on yellow highlighter (I guess). Tubes cannot be too long as the light will degrade. Need t experiment on that. Might wanna cover the end wih vinyl electrical tape or heat shrink tubes.
That's my thought, hope it helps.