Combine warm water, yeast and 1 tsp. sugar. Let sit for 5 minutes. Meanwhile: Microwave milk and butter for 90 seconds and mix. Beat egg in a separate bowl.
Combine flour, salt and sugar, then add in all wet ingredients. Use a bread maker on the dough setting or a stand mixer with a dough hook and knead for 20 minutes.
Allow to rise for one hour, until doubled. Form into little balls. Spray hands with oil spray if needed to prevent sticking. Place on parchment lined baking sheet.