In a saucepan, bring milk, water, butter and sugar to a boil. Remove saucepan from heat. Add flour all at once. Stir vigorously with a wooden spoon. Return pan to heat and continue stirring until the mixture forms a ball that pulls away from the sides of the pan, about 2 minutes.
Remove from heat and add eggs, one at a time, stirring well after each addition until dough is smooth. Stir in cheese.
With a 15 ml (1 tablespoon) ice cream scoop or a pastry bag fitted with a plain tip, form about 15 dough balls per sheet, spacing them evenly.
Bake, one sheet at a time, for about 30 minutes or until cheese puffs are golden brown. Eat warm or at room temperature.
Note from Ricardo
Cheese puffs freeze well. Simply reheat them in a 180 °C (350 °F) oven.