In the bowl on an electric mixer, stir together yeast, warm water and sugar. Let is sit for a couple minutes (5-10) until it bubbles and foams. If it doesn't bubble and foam, your yeast is dead or the water is the wrong temperature.
Then add milk, water, oil, honey, eggs and half the flour; beat to combine.
Switch to the dough hook and add remaining flour. Knead on low until a smooth dough forms. Then knead for 5 more minutes.
Set dough aside in a warm spot for 1 1/2 hours or until doubled in bulk.
To prepare the filling, combine all the ingredients in a small bowl and whisk until smooth.
Preheat the oven to 350 degrees F. Line 2 (I needed 3) baking sheets with parchment paper and set aside.
Divide dough into three parts. Working with one par at a time, roll the dough with a rolling pin into a very large circle (I did 16 inches in diameter). If your dough is bouncing back as you roll, let it rest for a few minutes. Spread 1/3 of the chocolate filling over the surface of the circle.
Cut each circle into 16 wedges (like a pizza), then roll each wedge up, starting with the wider end and ending at the point. Place seam side down on prepared baking trays, 1 inch apart. Repeat with remaining dough and filling.
Bake for 16-18 minutes until rugelach are just starting to turn golden. Eat hot or make ahead. They freeze great! Defrost and reheat at 350 degrees F for a few minutes before serving.