Mix water, yeast, sugar, milk, and oil and let sit for 5 minutes until bubbly.
In a stand mixer with a dough hook add in flour, baking powder and salt and then mix in yeasty liquid. Mix on medium-high for 5 minutes until dough comes together.
Cover dough in bowl and let dough proof for 2 hours until double in size
Cut parchment paper to fit into a steamer to prepare for the next step.
Once risen, take the dough and put onto your work surface. Roll the dough to 1/4 in thick.
Use a glass or a circular ring with about a 3 inch diameter to cut dough. This recipe makes about 16 buns.
Lightly brush the surface with oil and fold each bao in half into a semi-circle and lightly press with a rolling pin.
Place each bao into the steamer with about 1/2 an inch of space between them, cover and let rise for another 30 minutes until puffy.
Bring a pot of water to a boil and place your steamer basket over the pot. Steam your buns, covered, for about 10 minutes.
Remove from the pot and remove the lid for 1-2 minute before eating. These buns can be eaten as is or used in a bao sandwich.