Add panko breadcrumbs to a small bowl and mix in milk and 2 tbsp hot sauce. Stir to combine and set aside for 5-10 minutes.
Pre-heat oven to 425°F. Line a baking sheet with foil and set aside.
Add all meatball ingredients to a large bowl, including the panko breadcrumbs soaked in milk and hot sauce. Use your hands to mix until just combined, then use a cookie scoop for form 30-32 meatballs on the lined baking sheet.
Optional: once all meatballs are formed on the baking sheet, spray with a little bit of cooking spray to help encourage browning.
Bake at 425°F for 15 minutes or until lightly browned and cooked through so that no pink remains inside the meatballs.
While the meatballs bake, make the sauce. Add hot sauce, butter, and honey to a small pan and bring to a simmer over medium heat until all the butter is melted. Whisk vigorously to incorporate the butter and hot sauce, then pour the sauce over the cooked meatballs and gently toss to coat evenly.