Activate the yeast by mixing warm milk, warm water, granulated sugar, and melted butter. Stir in yeast and let it sit for 5-10 minutes until foamy.

In a mixing bowl, whisk flour and salt together. Gradually add the yeast mixture and knead until smooth. Let rise in a greased bowl until doubled in size, about 1 hour.

Prepare the blueberry sauce by cooking fresh blueberries and sugar until softened. Mix cornstarch with water and stir into blueberries until thickened. Add lemon juice.

Punch down risen dough and divide into 36 pieces. Roll each piece into a ball, dip in melted butter, and coat in brown sugar and cinnamon mixture.

Preheat oven to 350°F. Layer half the dough balls in a greased bundt pan, followed by half of the blueberry sauce. Add remaining dough balls and sauce on top. Let rise until nearly doubled, about 1 hour.

Bake for 40-45 minutes until golden brown and a toothpick comes out clean.

Prepare glaze by beating cream cheese and butter until smooth. Gradually add powdered sugar and milk until creamy.

Allow the monkey bread to cool for 10 minutes, then invert onto a plate and drizzle with glaze.