Step 1Combine the water, 1 teaspoon of sugar and the yeast and stir to dissolve. Set aside.
Step 2Heat the oil and milk in a small saucepan over low heat just until hot, 2 minutes.
Step 3In a large bowl beat the egg until frothy and mix in the 2/3 cup of sugar and the salt. Add the oil and milk mixture and blend well.
Step 4Add the yeast mixture and mix well, then the flour. The mixture should have a sticky and pliable texture. Place the dough in a greased bowl, cover and set the dough in a warm place to rise, 30 minutes to 1 hour.
Step 5Heat the oven to 350 degrees. Grease a baking sheet and set aside.
Step 6Roll out the dough on a floured board, and using a 2 1/2-inch cookie cutter, cut out rounds and place them on the baking sheet.
Step 7Bake the rolls until slightly browned, about 15 minutes.