In a large bowl, dissolve yeast and 1 teaspoon sugar in ½ cup warm water; let stand for 5 minutes. Add the milk, salt, egg, oil, remaining sugar, water and 2 cups flour. Beat until smooth. Stir in enough remaining flour to make a soft dough.

Turn onto a floured surface; knead until smooth and elastic, about 6-8 minutes. Place in a greased bowl, turning once to grease top. Cover and let rise in a warm place until doubled, about 45 minutes.

Punch dough down. Turn onto a lightly floured surface; divide in half. Roll out each piece to ⅓-in. or ½-in. thickness. Cut with a floured 2-½-in. biscuit cutter. Brush with butter if desired.

Make an off-center crease in each roll. Fold along crease so the large half is on top; press along folded edge. Place 2 inch apart on greased baking sheets. Cover and let rise until doubled, about 30 minutes.

Bake at 375F for 10-15 minutes or until golden brown. Remove from pans to wire racks to cool.