In a large bowl mix together 2 ½ cups flour, sugar, 1/2 tsp garlic powder, instant yeast, and salt.
Combine milk, water, and the ¼ cup unsalted melted butter in a small bowl.
Add the milk mixture to the flour mixture and then add the egg.
Add as much of the remaining 1 cup and 2 tbsp of flour as needed, a little at a time, to form a soft dough that will form into a ball.
Knead the dough for about 5 minutes on a lightly floured surface until it is smooth and elastic.
Shape the dough into a round and place it in a large bowl.
Cover the bowl with a clean tea towel and place it in a warm place.
Let the dough rise about 60 minutes, or until it has doubled in size.
Grease an oven safe baking dish set aside.
For coating, combine the 1/4 cup melted butter, Parmesan cheese, garlic powder, and Italian seasoning in a small bowl.
After the dough has risen place it on a clean work surface.
Divide the dough into 12 equal pieces.
Make each piece into a smooth ball by rolling it in your hands.
Brush the dough balls with the butter mixture.
Pour any remaining butter mixture over the rolls and cover with a clean towel.
Let the dough rise in a warm place or until doubled in size, about 45 minutes.
Preheat the oven to 350°F.
Bake the rolls for 30 to 35 minutes or until golden brown.