Line a large baking sheet with parchment paper, spray with baking spray. Set aside.
In a large bowl, combine lukewarm water and yeast. Let it sit for about 5 minutes.
Add milk, sugar, salt and melted butter , stir until fully combined.
Mix in flour to form a soft dough.
Turn dough on lightly floured surface and knead for 3-4 minutes.
Place dough in a greased bowl, turning once to coat the dough. Cover loosely with a clean cloth and let it rise in a warm, draft-free place for 1 to 2 hours or until doubled. Punch the dough down.
Roll dough into a rectangle, about 1/2 inch thickness. Use any sharp object like knife or pizza cutter to cut dough into strips about 5-6 inches long, tie into a knot, tucking the ends.
Preheat oven to 350 F°.
Line cooking sheet with parchment or foil paper and spray with cooking spray , then place rolls on prepared sheet pan about ½ – 1 inch apart . Repeat with the remaining dough. Cover lightly with kitchen towel and let rise for about 30 minutes or until dough is puffy.
Add butter, olive oil , garlic, Italian seasoning , salt and minced parsley in a microwave bowl. Cook for about 30 seconds-1 minute or until butter has melted completely. Set aside.
Once garlic knots have risen, brush garlic knots generously with garlic butter mixture (reserve some for later).
Place cookie sheet in preheated oven and bake for about 15-20 minutes, or until nicely browned on top.
Remove from the oven and let cool for about 5 minutes. Brush garlic knots with remaining garlic butter mixture .
Sprinkle with Parmesan cheese, if desired. Serve with pizza sauce for dipping, if desired