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 375°F 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.