In a mixer or large mixing bowl, blend water, milk, sugar, and yeast and blend together well. Let stand until it bubbles and looks frothy on top.
Melt butter and set aside.
In a separate bowl, whisk the flour and salt together.
When yeast mixture is ready, add in the melted butter and then slowly add the flour and salt mixture one cup at a time. Mix together until everything is mixed together well.
Spray a large bowl with cooking spray and transfer dough into it. Cover with a damp dishcloth and put in warm place for the dough to rise. Let rise for about an hour or until the dough has almost doubled in size.
Sprinkle extra flour onto a clean surface and dump out the dough onto the floured surface. Rub flour around your rolling pin and start to roll the dough out into a rectangle. Roll out to about ½” thick and then cut them into 3”x3” sized squares.
Put about 1-2” of oil in a cast iron pan and heat to about 320-330 degrees. Do not exceed 340 or you will burn the dough. The scones should float in the oil and not sit on the bottom of the pan while frying.
Fry scones on each side until a light brown color and flip over and do the same on the other side. They will begin to puff up. Drain on a plate with paper towels.
Serve warm with honey butter.