In a small saucepan, cook milk, ¾ cup water, butter, sugar, and salt on medium heat until butter is melted and mixture registers 120° to 130° on an instant-read thermometer.
In the bowl of a stand mixer fitted with the paddle attachment, whisk together yeast and flour. Add milk mixture and egg, and beat on low speed until a dough forms. Switch to the dough hook attachment, and beat on medium speed for 5 minutes until dough is smooth and elastic.
Turn out dough onto a lightly floured surface, and knead 4 to 6 times. Divide dough into 18 equal portions, and shape each portion into a ball with your hands. Place dough balls on a large parchment paper-lined baking sheet; cover and let rise in a warm, draft-free place (75°), until doubled in size, 1 to 2 hours.
Preheat oven to 350°.
Bake until rolls are golden brown, 20 to 25 minutes. Brush with melted butter, and sprinkle with salt, if desired. Serve warm.
Recipe by Paula Deen Magazine at https://pauladeenmagazine.com/fluffy-yeast-rolls-recipe/