Whisk together the flour, yeast, and sugar in a stand mixer. Cut 1/4 cup of butter into tablespoon slices and add it to the mixing bowl.
Whisk the ingredients together on low speed using the paddle attachment for 2 minutes.
Slowly add the milk and water while keeping the mixer on at a low speed. Once the wet and dry ingredients are combined, attach the kneading dough hook and knead the dough on medium speed for 5 minutes.
Cover the bowl with plastic wrap and let the dough rest in the fridge for 30 minutes.
Roll the dough out on a floured surface into a 10x14 inch rectangle.
Line a large baking sheet with a sheet of parchment paper, carefully transfer the dough to the baking sheet.
Cover the dough again and let it rest in the fridge for 2 hours.
When you have 1 hour left, place the remaining 1.5 cups of butter on one end of a large piece of parchment paper.
Fold the parchment paper over the butter and use a rolling pin to flatten the butter into a thin sheet.
Trim your butter down to a 10x7 inch rectangle. Place the sheet of butter in the fridge until the dough is ready.
After 2 the dough has been in the fridge for 2 hours, remove it from the fridge and place the cold butter in the middle of the croissant dough.
Fold the long edge of the dough over the butter to seal it. Roll your dough along the seam to create a roughly 7x20 inch rectangle.
Fold the dough in thirds, rotate the dough 90 degrees, and roll it out again to 7x20 inches.
Fold the dough into thirds again, and roll the dough one more time, rotating it another 90 degrees.
Return the dough to the baking sheet and cover with plastic wrap. Chill your croissant dough in the fridge for 12 hours.
Before removing the croissant dough from the fridge, chop your chocolate into small pieces of chocolate if you are using a block of chocolate. I find it best to use a sharp knife to chop it into small pieces.
Roll the dough out on a floured surface. You want your dough to be about 8x20 inches, but you’ll want to roll it out a little bigger and then trim it down to size so the butter goes all the way to the edges of the pastry dough. You will see the butter in layers of the dough even though you rolled it and folded it previously.
Slice the croissant dough into 16 rectangles.
Place a spoonful of small chocolate pieces chocolate on each end of the rectangles and roll the dough over the chocolate. Place the croissant seam side down onto the baking sheet.
Once the croissants are rolled, chill the dough for another 30 minutes.
Preheat the oven to 375°F.
While the oven is preheating, whisk together the egg and milk to create your egg wash. Brush the top of each croissant with the egg wash and then bake for 20 minutes.