In large bowl, combine 2 cups flour, sugar, salt and yeast; mix well. In small saucepan, heat water, milk, and 1/2 cup butter until very warm (120 to 130 degrees). Add warm liquid and egg to flour mixture; blend at low speed until moistened. Beat 3 minutes at medium speed. By hand, stir in an additional 2 1/2 to 3 cups flour until dough pulls cleanly away from sides of bowl.

On floured surface, knead in 1 1/4 to 1 3/4 cups flour until dough is smooth and elastic, 8 to 10 minutes. Place dough in greased bowl; cover loosely with greased plastic wrap and cloth towel. Let rise in warm place (80 to 85 degrees) until light and doubled in size, 45 to 60 minutes.

Lightly grease 12 muffin cups. Punch down dough several times to remove all air bubbles. Using half of dough, divide dough into 12 equal pieces; divide each into thirds. Shape each into a ball, pulling edges under to make a smooth top. Place 3 balls, smooth side up, in each greased muffin cup. Cover; let rise in warm place until light and doubled in size, 20 to 30 minutes. After rising, bake 14 to 18 minutes or until golden brown. Brush with melted butter, if desired.

Makes 12 rolls.