In a bowl, combine warm water, warm milk, active dry yeast, sugar, and oil. Let it sit for 5-10 minutes until the yeast activates.
In a separate bowl, mix all-purpose flour, salt, sugar, and baking powder.
Combine the wet and dry ingredients in a stand mixer or by hand until a dough forms. Knead until elastic but not sticky.
Shape the dough into a ball, place it in a bowl, cover, and let it rise for 1.5 to 2 hours.
Roll out the dough, cut into circles using a glass or biscuit cutter, fold, and let rest for 30 minutes.
Place the buns in a steamer lined with a coffee filter, ensuring they have space to expand.
Steam the buns for 8-10 minutes until fluffy.
Serve the steamed bao buns with your favorite fillings.
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