Gather the required ingredients and measure them accordingly.
In a bowl, mix together the all-purpose flour, sugar, baking powder and salt.
Create a separate mixture with water, vegetable oil, milk, and vanilla extract.
Pour the liquid ingredients into the bowl with dry ones and combine until a soft dough forms.
Roll the dough into 1-inch balls and place them on a parchment paper-lined baking sheet.
Heat oil in a pan and gently add the balls, frying over medium heat until golden brown.
Serve the Korean Butter Balls with powdered sugar and honey.