Place sugar, butter and salt in a medium bowl. Scald milk, heat milk over low heat until small bubbles form around the edge of the pan; the temperature should read 180° to 190° F. Pour milk over sugar mixture and stir to combine. Set aside to cool to lukewarm.
Meanwhile, combine yeast in a small bowl with warm water - 105° to 115° F. Add egg and mix together slightly. Pour into the milk mixture and stir together.
Add flour; stir until well mixed and soft dough forms. Cover dough with a plate or towel and set aside to rise until double in bulk, about 2 hours.
Preheat oven to 350° F. Grease a muffin pan; set aside.
Punch down dough and knead briefly on a floured surface, adding more flour as needed to prevent sticking. Knead dough until springy and easily handled.
To form rolls, divide dough into small pieces, shape into little balls, about 1 inch in diameter. Place 3 balls in each section of muffin pan.
Bake for 15 to 20 minutes or until golden brown. Remove from pan and cool on a wire rack.Servings: 12 rolls