Warm the milk and water - it needs to be just tepid, not hot.
Mix in the sugar and yeast, and leave it for a few minutes until it gets frothy.
Take a large mixing bowl, and put in the flour and salt, and then the olive oil and the milk/yeast mixture.
Mix it all very well until the mixture is smooth. Cover the bowl with some cling film (or a plate) and leave it in a warm place to rise.
After about 30 minutes, uncover and mix it all again and then replace the cover.
Now it needs to rest for at least an hour in the fridge.
Loukoumades are deep-fried, so take a large deep pan and put in plenty of sunflower oil. If you have a deep-fryer, that is a much better option.
I have a sugar thermometer, so I put that in the oil and heat it to 200 degrees. If you don't, drop a little cube of bread into the hot oil to test that it is hot enough to turn the bread into a crouton really quickly.
To drop the blobs of dough into the oil you need to be very careful - it's all very hot!
I use an ice cream scoop and a dessert spoon to take small amounts of dough - 2 spoons work well too.
Carefully drop the blobs of dough into the oil and fry until golden. They puff up a lot during cooking so don't overload the pan.
Drain the cooked loukoumades on kitchen paper and then transfer to a plate and drizzle with honey and cinnamon.