Preheat the oven to 400 degrees F. Butter a baking pan.
Whisk together the water, butter, milk and sugar in a small saucepan. Place over medium heat and warm to 110 degrees F.
Lightly whisk in the yeast. Place in a warm spot to proof for 5 minutes, or until foamy.
Meanwhile, in a medium bowl, combine 3 1/2 cups flour and salt.
Slowly add the yeast mixture into the flour mixture and fold in until combined. You want the dough to be moist, but not too sticky. Add more flour if needed.
Turn the dough out onto a floured surface and knead for about 5 minutes.
Form the dough into a ball and place in a greased bowl. Cover with a warm damp towel and let rise for 15 minutes.
Turn the dough out and punch down. Divide into 12 equal pieces and form into balls. Place the balls in the baking pan.
Bake for about 20 minutes, or until the internal temperature is between 200 and 210 degrees F.