When lava causes nearby ice to melt into water it doesn't mix with the water to form into stone. I have only tested this on a server. However, if the water is below the lava then it will form stone like expected
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Thank you for your report!
We're actually already tracking this issue in MC-4641, so I resolved and linked this ticket as a duplicate.
However, that ticket has already been resolved. That means that this is not considered a bug and won't be fixed. Please do not leave a comment on the linked ticket.
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"I have only tested this on a server"
Yeah, this is totally fine in single player