In the bowl of a stand mixer combine the water, yeast and sugar; let rest 10 minutes until foamy.
Add milk, egg, butter, sugar, salt, and flour to the yeast mixture and mix with the dough hook on medium-low until thoroughly combined, about 10 minutes
Transfer the dough to a lightly oiled bowl, cover and let rise until doubled in size, about 1 hour.
Turn dough out onto a lightly floured surface. Divide dough in half. Let rest ten minutes.
In a small bowl, combine 1/4 cup butter and honey; set aside.
Roll each half into a 12 inch circle, spread butter mixture over both rounds. Cut each circle into 8 wedges. Roll wedges starting at wide end; roll gently but tightly. Place point side down on ungreased cookie sheet. Cover with clean kitchen towel and put in a warm place, let rise 1 hour.
Preheat oven to 350 degrees F. Bake in preheated oven for 12 to 14 minutes, until golden. Brush with melted butter and serve warm.