Add in warm milk, warm water, and two tablespoons of sugar, two tablespoons of canola oil in a medium-sized bowl, and add in the active dry yeast. Mix ingredients until the active dry yeast are dissolved. Let the yeast mixture rest for five minutes or until bubbly.
Place all-purpose flour, salt, remaining sugar, and baking powder in the mixing bowl and mix using a wire whisk. Attach the mixing bowl in the electric stand mixer and attach the hook attachment. Add in the yeast mixture and mix at low speed until the yeast mixture and the flour mixture starts to combine. Scrape the flour on the sides of the bowl and change speed to medium. Continue mixing until the dough forms, This takes about seven to eight minutes of mixing.
Remove the dough from the bowl and brush the bowl with oil. Form the dough into a ball and put it back in the oil bowl. Turn the Bao Bun dough to coat with the oil. Cover the dough with plastic wrap and place in a warm place to rise for one hour.
After an hour, sprinkle your working space with flour and place the raised dough and flatten it into 1/4 inch thickness using a rolling pin. Cut the dough into a circle using a ring mold or glass. This recipe will yield sixteen round bao buns.Another process is to form the dough into a circle and divide the dough using a dough cutter. You can divide it into sixteen pieces. Form the dough into round circles and flatten using a pin. Brush one side of the dough with oil and fold the dough into a half-moon shape. Brush one side of the dough with canola oil and fold into a half-moon. Gently press the dough with a rolling pin a place it on a parchment paper. Line the prepared dough in the steamer and let it rest for thirty minutes.