Add water, milk, sugar and yeast in the bread machine pan. Set aside for 5 minutes.
Add remaining ingredients. Select Dough/Knead cycle; press Start.
When cycle finishes roll 1-2 inch balls of dough and place on a lightly greased pan.
Cover and let rise 1 hour.
Preheat oven to 400 degrees.
Bake in preheated oven for 10 to 15 minutes, until golden.