Combine the water, milk, sugar oil, and active yeast in a small bowl. Stir together and let sit for 10 minutes. Add the salt and baking powder to the milk and oil mixture after the yeast has activated, stirring together.
In a larger separate bowl, add the flour. Pour the milk and oil mixture into the flour and gently stir until a dough forms.
Transfer this dough to a clean surface and knead for about 5 minutes.
Cut the dough in half and roll each piece out into a long log. Cut into bite-size pieces around 2 inches thick. Roll each cut piece to make a rounder shape like domino’s bites, and transfer to a baking sheet with parchment paper. Cover with plastic wrap and let sit at room temperature for 30 minutes.
While the dough is resting, create the garlic topping. Melt the butter and mix with the garlic powder and dried parsley.
Once the dough has sat for 30 minutes, generously brush half of the mixture onto the dough bites. Bake in the air fryer at 320 degrees F, for 5-7 minutes, tossing around once halfway through so the bottoms and top get a bit crispy.
Remove from the air fryer and brush again with the rest of the butter mixture. Sprinkle all the parmesan cheese over the butter-bread bites.