Add the milk, water, butter, vanilla, flour, sugar, yeast and salt to your bread machine. Process on the dough setting according to manufacturers instructions.
Refrigerate the dough overnight if desired. If refrigerated, allow to sit at room temperature before proceeding.
When ready to put the bread together, make the coating by combining the brown sugar , sugar, and cinnamon in a shallow bowl.
Put the melted butter in another bowl.
Grease a 12-cup nonstick Bundt pan very well.
Lightly flour a pastry mat or clean counter. Press the dough into an 8-inch square.
Cut the dough into 8 strips, and then cut each strip into 8 pieces, for a total of 64 pieces. Cover loosely with plastic.
Form the balls into small circles with your hands. Dip the balls in melted butter, and roll in the sugar mixture to coat.
Place the sugared balls in the prepared pan, staggering the seams to build the layers.
Cover with plastic wrap, and let rise for 1 ½ to 2 hours.
Preheat the oven to 350° F. Bake for 30 to 35 minutes, until the top is a deep golden brown.
Let the bread cool in the pan for 5 minutes, and then carefully invert onto a platter and let cool for 10 minutes.
Make the glaze by whisking together the confectioners sugar and milk.
Drizzle the glaze over the bread. Serve warm.