Dissolve yeast and 1 teaspoon sugar in water. Set aside. In a saucepan, heat milk, 1/3 cup butter, 1/3 cup sugar and salt to 110°-115°. Stir until butter melts. Pour into a large bowl and add 2 cups flour and yeast mixture. Beat until smooth. Stir in enough remaining flour to form a stiff dough.
Turn out onto a floured surface and knead until smooth and elastic, about 6-8 minutes. Shape into a ball and place in a greased bowl. Cover and let rise until doubled, about 1 hour. Punch dough down, divide in half. Cover and let rest 10 minutes. Form dough into desired dinner roll shapes.
Place on greased baking pans. Melt remaining butter and brush over rolls. Let rise 30 minutes. Bake at 375° for 12-15 minutes or until golden.