Wow, I can't believe I made such good rolls.
I don't have a breadmaker, so here's what I did:
I mixed the water and milk, nuked in in the microwave for 1 minute and 15 seconds, poured it into the bowl of my KitchenAid mixer, then stirred in the sugar until it dissolved, then stirred in the yeast. I use yeast from a jar instead of packets, and I used 2.5 teaspoons. After it got foamy (I only waited about 10 minutes...I'm impatient) I mixed in the salt, butter and egg, then I started mixing the flour a half cup at a time. I let it rise for about 45 minutes in the bowl, then punched it down, divided it into 16 balls (I didn't feel like making crescents) and let it rise for another hour, then baked for 10 minutes. They turned out like something from a bakery. I have never, ever baked bread this wonderful. I am so bummed that I am home alone right now and nobody can see what a wonderful thing I just did!
I also want to add, pay attention to the temperature of your oven...My oven tends to be extremely hot, so I only set it for 350 to bake these...they turned out perfect. I know 400 degrees would have blackened them.