Step 1

Combine warm water, milk, active yeast, sugar, and oil. Whisk to let yeast and sugar dissolve, then let it sit until yeast activates, about 5 to 10 minutes.

Step 2

Meanwhile combine flour, sugar, baking powder and salt in a stand mixer. You can mix with your hands too if you prefer.

Step 3

Pour the wet ingredients into the dry ingredient mixture. Start on low speed to slowly incorporate all the ingredients together then on medium speed until it becomes a dough shape. Keep kneading for 3 to 4 minutes on medium speed. The dough should be elastic and really soft but not stick to your fingers or on the mixing bowl.

Step 4

Take the dough off the hook and form it into a ball. Place back to the mixing bowl, cover with plastic wrap and let it rise in a warm place until it becomes triple in size, about 2 hours. Let it sit longer if needed.

Step 5

Place the raised dough on a working surface. Roll out the dough 1/4-inch thick. Sprinkle flour if necessary, but if you do, use as minimal as possible. Cut the dough 3 1/2-inch circle with a ring mold or glass (I used a wine glass). This recipe will make 14 to 16 baos.

Step 6

Lightly brush or spray oil on one surface of the baos and fold them in half as a half moon shape. Gently press each bao with a roller and place on a parchment paper or coffee filter lined steamer. Cover with a lid and let it rest for additional 30 minutes.

Step 7

Meanwhile, bring water to boil in a wok or steamer pot. Carefully place the steamer with the baos on top of boiling water wok/pot. Make sure water is not touching the baos. Cover and steam for 8 to 12 minutes. When they are done cooking, tilt/open the lid slightly for slow air circulation, about 2 to 3 minutes before opening the lid all the way. Spray some water on coffee filter to prevent the dough from sticking. You can serve this bao as a side or make sandwiches! Enjoy!