Measure the egg, 2 tablespoons butter or margarine, water, milk, salt, sugar, bread flour and yeast into dough pan according to manufacturer's directions. Select Dough setting, then Start. When unit signals and display reads 0:00, press Stop and remove dough.
Place melted butter in a small bowl. In a separate small bowl mix together the paprika, cheese, garlic powder, onion flakes, sage and tarragon. Cut prepared dough into 20 to 25 pieces and roll in butter then in herbs. Stack coated dough pieces in a lightly greased ring tin. Cover with a damp cloth and let rise 30 minutes or until doubled.
Meanwhile, preheat oven to 180 degrees C.
Bake for 30 to 35 minutes or until golden. Serve warm.