Combine 1 cup flour, sugar, dry yeast and salt in a large mixer bowl and stir until blended. Combine milk, water and butter in a small microwave-safe bowl. Microwave on HIGH in 15 second increments until very warm but not hot to the touch (120° to 130°F. Butter won’t melt completely). Add to flour mixture.
Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add 1/4 cup flour; beat 2 minutes at high speed. Stir in just enough remaining flour so that the dough will form into a ball.
Knead on lightly floured surface until smooth and elastic and dough springs back when lightly pressed with 2 fingers, about 6 to 8 minutes. Cover with a towel; let rest for 10 minutes.
Cut dough into 12 equal pieces. Shape each piece into oval/egg shaped balls using your hands. Place on greased baking sheet.
Using a skewer, poke 2 holes for eyes into each roll, about 1/2 to 3/4-inch deep. Insert a current into each (optional). Use scissors to make 2 deep cuts, one on each side, slightly above and behind the eyes for the ears. Here's how: hold scissors pointed toward the head at about a 45 degree angle with the pan. Make a cut about 3/4-inch long, snipping from the back toward the front of the bunny, forming a triangle. If the ears seem too pointed, gently round the ends. Lightly press the ears back to the head to prevent overbrowning. Cover with towel; let rise in warm place until doubled in size, about 30 minutes.
Bake in preheated 375ºF oven for 15 to 20 minutes or until golden brown. Remove from baking sheet and cool on wire rack; brush with additional melted butter, if desired. Serve warm.