Combine the milk, water, butter and sugar in a saucepan. Bring to a boil then remove from heat and let stand until lukewarm.
In a large bowl, stir together the flour and yeast. Pour in the wet ingredients until the dough starts to stick together. Knead the dough for about 10 minutes, until the dough is smooth and elastic. Place the dough in a greased bowl and turn to coat. Cover and let stand until doubled in size, around 1 hour.
Punch down dough and divide into 12 portions. Make tight balls by pulling the dough tightly around and pinching it at the bottom. Place on a baking sheet lined with parchment paper.
After the rolls sit for a minute, flatten each ball with the palm of your hand until it is 3-4 inches wide. Set rolls on baking sheet and set aside to double in size, about 20 minutes.
Preheat the oven to 400˚F. Position 2 oven racks so they are not too close to the top or bottom.
Place one baking sheet on the top rack, and one on the bottom rack, and bake for 10 minutes in the preheated oven. Remove from oven, and return each baking sheet to a different rack. Continue to bake for another 5-10 minutes, or until nicely browned on the top and bottom.