Grease a bundt pan very well with 2 tbs of softened butter being sure to get into all of the crevices. Set aside.
In a large measuring cup, mix together milk, water, melted butter, sugar and yeast packet. Allow the yeast to get foamy so you know it's alive, about 5 minutes.
In the bowl of your stand mixer fitted with a dough hook (or a large bowl with a spoon if you are making this by hand), add flour and salt. Turn mixer on low and slowly add the milk mixture. Once the dough starts coming together, increase speed to medium and mix until the dough is smooth about 6-7 minutes. If the dough is too wet, add 1 tbs more flour at a time. The dough should still be sticky, but workable with floured hands. Take the dough out and either use the same bowl or grab another large bowl. Grease bowl well with non-stick cooking spray and place dough in, then flip to be sure all areas are coated. Cover tightly with plastic wrap and let rise in a warm place until doubled, about one hour.
Tip: I like to turn my oven to 170 degrees, turn it off and place my bowl of dough in there to create a warm environment for my dough to rise.
While dough is rising, get the brown sugar and cinnamon coating together. Once dough is done rising, melt butter and set it in a shallow dish beside the brown sugar mixture.
To form the bread, remove the dough from the bowl and press it into a rough 8-inch square. Using a bench scraper or knife, cut the dough into 60-64 pieces. Roll each dough piece into a ball, it doesn't have to be perfect. Working one at a time, dip the balls in melted butter then quickly into the brown sugar mixture. Layer the balls in the bundt pan, staggering the seams randomly to build layers.
Cover the bundt pan tightly with plastic wrap and let the monkey bread rise in a warm place again until puffy and it has risen almost to the top of the pan, about one hour.
Preheat the oven to 350°. Unwrap the pan and bake until the top is deep brown and it begins to bubble around edges, 27 to 35 minutes. Mine was done in 27. Cool the monkey bread in the pan for 5 minutes ONLY, then turn out on a large plate and allow to cool slightly, about 10 minutes.
While the bread cools a bit, mix up the glaze. Whisk the powdered sugar, cream or milk and vanilla together in a small bowl until the mixture is smooth. Drizzle the glaze over the warm monkey bread, letting it run over the top and sides. Serve warm.