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In a large bowl, whisk together 2½ cups flour, ¼ teaspoon salt, and ¼ teaspoon instant yeast until evenly combined.
In a separate bowl, combine ⅔ cup milk, ½ cup water, and 1 tablespoon butter. Microwave for 30-90 seconds until butter is completely melted.
Pour the warm milk mixture into the flour mixture and mix with a spatula until absolutely no dry flour remains, scraping down sides of bowl. The dough will be quite wet and sticky. Cover tightly with plastic wrap and let rise at room temperature for 12-18 hours.
Generously flour a work surface and turn out the risen dough. Cover with plastic wrap and let rest for 10 minutes to relax the gluten. Roll dough to about ¾-inch thickness.
Using a 3-inch round cookie cutter or glass, cut straight down without twisting to create 8 rounds. Place on a parchment-lined baking sheet, cover, and rise for 45 minutes until puffy.
Heat a large non-stick skillet over medium heat. Using a spatula, carefully transfer muffins to skillet, leaving 2 inches between each. Cover with lid and cook 6-7 minutes until golden brown on bottom.
Flip muffins and cook uncovered for 3-4 minutes until second side is golden brown. Cool completely before splitting with a fork to preserve the signature nooks and crannies.