In a small saucepan whisk together the water, milk, and bread flour. Cook and stir over medium heat until it is the consistency of paste. Remove from the heat and allow it to cool to room temperature.

Meanwhile, in a large bowl stir together 2½ cups of the flour and the yeast.

In a medium saucepan combine the milk, sugar, honey, butter, and salt. Cook and stir over medium heat until warm (115°F to 120°F) and butter almost fully melts.

Stir the milk mixture, cooled paste, and two of the eggs into the flour mixture. Stir in as much of the remaining flour as you can.

Turn the dough out onto a lightly floured surface. Knead in enough of the remaining flour to make a dough that is smooth and elastic. It will be slightly tacky but should not be sticky. The kneading process will take a total of about 3 to 5 minutes.

Place the dough in a lightly greased bowl, turning to grease all surfaces of the dough. Cover and let rise in a warm place for about one hour, until nearly double in size.

Punch the dough down. Let rest for 10 minutes. Grease a 13x9-inch baking pan. Shape the dough into 20 balls. Arrange in the prepared pan. Cover and let rise in a warm place until nearly double in size for about 30 to 45 minutes.

Preheat the oven to 350°F.

In a small bowl, whisk together the remaining egg and 1 tablespoon of water. Gently brush the rolls with the egg mixture. Sprinkle with rolled oats. Bake until golden, for about 25 minutes. Cool slightly.

In a small bowl, whisk together room temperature butter with the honey until fluffy. Serve the rolls while still warm with the honey butter on the side.