Preheat oven to 400°F and line a baking sheet with parchment paper. Set aside.
In a small pot, melt together butter, water, and milk on medium heat until it comes to a simmer. Bubbles must be coming to the surface. Add the flour in all at once and quickly stir it together right away until it forms a soft dough.
Keep stirring the dough around the pot, flattening it out, and spreading it around for about 4 minutes to dry it out. It should look like dry mashed potatoes. Remove from heat and let cool for 5-10 minutes until barely warm to the touch.
Add in the eggs ⅓ at a time, stirring until the dough has absorbed the eggs in between additions. It will look like it's curdled for a bit but just keep stirring until it's smooth and slightly shiny. Your dough is at the right consistency when you scoop it up with a spatula and let it drop back into the pot and it leaves a V-shaped piece of dough on the spatula.
Use a 2" cookie/ice cream scooper to scoop the dough out onto your baking sheet, leaving 3" between each choux.
Take your frozen craquelin sheet out and use a 2" round cookie cutter to cut out discs. Place the craquelin discs on top of each choux dough mound.
Bake at 400°F for 5 minutes. Turn it down to 350°F and bake for another 25-30 minutes until puffs are golden brown. In the last few minutes of baking, use a chopstick to poke a hole into each puff to release any steam inside. Let cool completely before using a serrated knife to cut the tops off (optional).