Preheat oven to 350° F. Combine sugar and yeast in tepid water; let stand 5-10 minutes until yeast begins to foam. Thoroughly mix milk, butter, sugar, egg and salt in larger bowl.
Stir in the yeast mixture and 3 1/2 cups of flour; add more if needed to make a soft, pliable dough. Turn dough out on floured board; let it rest while you wash, dry and butter the bowl. Knead dough gently 4-5 minutes, adding flour if necessary, until dough is smooth and silky.
Return to bowl, cover with plastic wrap, and allow to rise in warm place until double in size. Butter a 12-cup muffin tin. Punch down dough. Pinch off pieces big enough to fill half of muffin cup; roll into smooth ovals.
Place two pieces in each prepared muffin cup; it should be a tight fit. Cover loosely with plastic wrap and allow to rise for 45 minutes. Bake rolls 20-25 minutes or until light brown.Servings: 1 dozen