In a small saucepan, heat milk, water and butter until very warm, 120 degrees F (50 degrees C).
In a large bowl, mix together 1 3/4 cup flour, yeast, sugar and salt. Mix milk mixture into flour mixture, and then mix in egg. Stir in the remaining flour, 1/2 cup at a time, beating well after each addition. When the dough has pulled together, turn it out onto a lightly floured surface, and knead until smooth and elastic, about 8 minutes.
Divide dough into 12 equal pieces. Shape into smooth balls, and place on a greased baking sheet. Flatten slightly. Cover, and let rise for 30 to 35 minutes.
Bake at 400 degrees F (200 degrees C) for 10 to 12 minutes, or until golden brown.
For Hot Dog Buns: Shape each piece into a 6x4 inch rectangle. Starting with the longer side, roll up tightly, and pinch edges and ends to seal. Let rise about 20 to 25 minutes. Bake as above. These buns are pretty big. I usually make 16 instead of 12.