In stand mixer bowl, combine 1 1/2 cups bread flour, yeast, sugar and salt; mix well using paddle attachment.
In saucepan or microwave-safe dish, heat milk, water and butter until warm (120°-130°F; butter does not need to melt). Add to flour mixture. Add egg. Blend at low speed until moistened; beat 3 minutes at medium speed.
Switch to dough hook attachment. Gradually stir in enough remaining flour to make a soft dough. Knead until smooth and elastic, about 2 minutes.(NOTE: For hand mixing: following above steps, mix ingredients in large mixing bowl using a wooden spoon or dough whisk. Knead on floured surface until smooth and elastic.)
Divide dough in half. Divide each half into 6 pieces. Shape each piece into a smooth ball.
Make coating: Combine melted butter, paprika and garlic powder; mix well.
Dip balls into butter mixture; place in a greased 9x5-inch bread pan, placing 6 balls on each layer. Sprinkle tops with sesame seeds. Cover; let rise in warm place until indentation remains after lightly touching.
Preheat oven to 375°F.
Bake for 40 to 45 minutes until golden brown. Remove from pan; serve warm.