To activate dry yeast, whisk yeast, ½ tsp. sugar, and ¼ cup warm water (110–115F) in a small bowl; let stand until foamy and puffed, 10–15 minutes.

Heat milk in a Butter Warmer or Saucepan over medium until just warm (110–115F).

Add 4 Tbsp. butter, yeast mixture, egg, remaining 3 Tbsp. sugar, and salt to a large bowl. Slowly pour in the warm milk and whisk to blend, breaking butter up into small clumps. Add flour and stir with a Wooden Spoon or spatula until dough forms; it will be quite shaggy and sticky. Knead dough with lightly floured hands on a lightly floured surface until smooth, about 5 minutes. At this point the dough should be smooth, elastic, and a little bouncy.

Form dough into a ball and transfer to a lightly oiled bowl; turn to coat. Cover loosely with plastic wrap. Let stand at room temperature until doubled in size, about 1½ hours.

While your dough is rising, set a Dutch Oven over medium-low. Melt 3 Tbsp. butter and swirl to coat bottom. Remove from heat and set aside.

Transfer dough to a floured work surface. Use a Chef Knife or bench scraper to cut dough into 12 pieces.

Shape each piece into a smooth ball by rolling on the surface. Place smoothest side of each dough ball facing up in the buttered Dutch Oven. Cover pot with the lid and let rolls rise until they fill pot , 45–60 minutes.

Towards the end of the rising time, preheat oven to 400F and lower rack to bottom third of oven. Melt remaining 1 Tbsp. butter in a Butter Warmer or Saucepan over medium; set aside to keep warm.

Remove lid from Dutch Oven and brush rolls with about half of the melted butter; cover with lid. Transfer covered pot to the oven and bake rolls for 15 minutes.

Remove lid from the pot, brush with remaining melted butter, sprinkle with flaky salt and black pepper (or poppy or sesame seeds), and bake rolls uncovered, watching closely, until golden brown on the top and sides, another 10–15 minutes.

Remove pot from the oven and set it on a rack to cool.

Serve rolls warm or at room temperature. Rolls will keep in an airtight container at room temperature for 2–3 days or frozen for up to 3 months.