Combine flour, sugar and baking powder in a bowl. Mix thoroughly.
Make a well in the center and add the milk, egg, water, butter and vanilla essence/ extract. Blend for at least 2 minutes until the batter becomes smooth.
Note: Whisk/stir slowly so that the mixture will not produce too much air bubbles.
Fold in the grated cheese into the mixture until it is well incorporated.
If using traditional puto mold, grease mold with oil or butter so the puto mixture will not stick to the mold. Skip this step if using silicon cupcake mold.
Pour batter into each individual molds, about ¾ full as the puto will rise while steaming.
Steam the puto for about 8-10 minutes (depending on molds used) in low heat.
After 8-10 minutes, add the cheese strips on top of the puto and steam for another 5-7 minutes.
Remove cooked puto from steamer and let it cool. Take out puto from its mold and serve.
Enjoy with a cup of tea or coffee!