In bowl of an electric stand mixer whisk together warm water, yeast and and 1/4 tsp sugar. Let rest 5 – 10 minutes until mixture is foamy. Fit mixer with whisk attachment. Add in 1/3 cup sugar, warm milk, 5 Tbsp butter, egg and salt to yeast mixture. Blend Add in 2 cups flour and mix until well combined. Switch mixer to a dough hook attachment. Add remaining 2 1/2 cups flour and mix until dough is nearly smooth and is elastic, about 4 – 5 minutes
Transfer dough to a greased, large mixing bowl and cover bowl with greased plastic wrap. Allow dough to rise in a warm place, free from draft, until double in volume, about 1 1/2 hours. Punch dough down all over. Divide dough into two equal portions. Shape each portion into a ball. Roll each dough ball out on a lightly floured surface into a large circle about 13 – 14 inches across Spread each circle of dough evenly with 2 Tbsp softened butter. Cut each circle into 4 equal quarters, then each quarter into 3 wedges Roll each wedge up, beginning on wide (outside) edge.
Transfer rolls to a buttered 18 by 13-inch cookie sheet (the tip of the rolled wedge should be tucked on the bottom Cover rolls loosely with greased plastic wrap and let rise in a warm place until double in size, about 1 hour. During the last 15 minutes of rising preheat oven to 375 degrees. Remove plastic wrap and bake rolls in preheated oven for 15 – 19 minutes until golden brown. Remove from oven and brush with remaining 3 Tbsp butter (preferably melted). Serve warm or allow to cool and store in an airtight container.