In a small bowl, combine water and yeast. Let mixture sit for 5 minutes or until yeast reacts and is foamy.
Add yeast mixture to the bowl of a stand mixer or a large bowl if mixing by hand. Add milk, butter, sugar, egg, and salt. Mix until combined.
Slowly add 4 cups flour, mixing until combined. With mixer on low, gradually add up to 1 more cup flour, a little at a time, until dough pulls away from the sides of the bowl and forms a ball. You may not need all of the flour. Let mixer knead dough until smooth and elastic, about 5 minutes.
Cover dough and let rise in a warm place for about 1 hour until doubled in size.
Punch down dough and place on a floured surface. Divide dough in half. Then divide each half into 6 dough balls (12 balls total).
Roll each dough ball into a long rope about 9 inches long and tie in a knot. Line a baking sheet with parchment paper. Place knots on baking sheet and cover with a kitchen towel. Let knots rise for about 1 hour until doubled in size.
Preheat oven to 350 degrees F. Bake knots for 12 to 15 minutes or until barely brown.
While rolls bake, make garlic butter glaze. In a small bowl, microwave 2 tablespoons butter until melted. Add garlic powder, parsley, and salt. Stir together.
Brush tops of warm rolls with butter glaze. Sprinkle with Parmesan cheese.