Mix 1 ¾ cups all-purpose flour with 1 teaspoon baking soda and put the floury mixture in a bowl. Add 1 egg, ⅓ stick unsalted butter (softened), 2 Tablespoons honey (liquid), and ½ cup powdered sugar. First, mix the wet ingredients with the flour using a fork, then work into a soft dough with your hands.
Wrap the dough in plastic wrap and put it in the fridge to rest for an hour.
Roll the rested honey dough into sheets about ½ inch (1 cm) thick. The shape doesn't matter too much, as the dough will be crushed into crumbs after beeing baked. When rolling out the dough, I recommend dusting the work surface lightly with flour to prevent the dough from sticking.
Line a baking tray with parchment paper and place the honey dough sheets on it. Preheat the oven to
320 °F. Place the baking tray in the oven and bake for 12 minutes. Once baked, take off the parchment paper with the honey dough sheets and put them on a wire rack to cool. If you let the baked dough cool on the tray, it's fine, but in that case, I recommend placing the tray in a cool spot.
Once the sheets of dough have cooled, break them into crumbs. You can do this by hand or by placing the pieces of dough in a food processor and pulsing them a few times until they turn into small crumbs. Alternatively, you can grate the dough using a hand grater.
Set aside about half a cup of the crumbs to coat the balls. Combine the remaining crumbs with ⅔ cup caramelized sweet condensed milk and 1 stick unsalted butter (softened). Start by mashing them together with a fork, then use your hands to form a soft dough.
Cover the soft dough with plastic wrap and place it in the fridge for about an hour to firm up.
Scoop equal-sized portions of the dough, roll each into a ball using your hands, and coat them by rolling in the reserved crumbs.