In a small bowl mix warm water and yeast. Allow to proof until foamy (about 5 minutes).
Heat milk in microwave until hot (90 seconds-2 minutes). Stir in butter. Let stand until milk is warm NOT hot.
Pour butter and milk mixture into a large bowl. Add water and yeast mixture.
Stir in sugar and salt.
Mix in flour, one cup at a time.
Knead dough on a lightly floured surface until smooth.
Place in a well oiled large bowl, and turn dough to coat. Cover with a damp cloth or plastic wrap. Allow rolls to rise in a warm place until doubled in bulk, about 1 hour.
Punch dough down and divide into two portions. Roll each portion into a 12" x 18" rectangle. Spread with 2 tablespoons of butter. Fold dough in half and slice into 12 (1") strips.
Pick up one strip, streth it slightly, and fold it in half. Tie the dough in a knot and tuck the ends under slightly. (Watch video for step-by-step instructions). Place on greased baking sheet, 12 rolls per sheet.
Allow to rise for 40 minutes.
Bake at 350 degrees for 18-20 minutes, or until golden brown.
Brush rolls generously with butter while in pans.
I preheat my oven for 60 seconds and then shut it off. It makes for the perfect warm spot for my rolls to rise.