Place 1/4 cup of the warm water in a small bowl; stir in yeast. Let stand 10 min or until yeast is dissolved and foamy.
Meanwhile, whisk remaining 1/2 cup water, buttermilk, egg, butter, sugar and salt in large bowl. Whisk in yeast mixture to combine.
Slowly stir in 3 1/2 cups of flour, using hands if necessary, until soft dough forms. Slowly add up to 1/4 cup additional flour if needed to form soft dough that pulls away from sides of bowl.
On lightly floured surface, knead dough 7 to 10 min or until smooth and elastic. Place dough in lightly buttered large bowl; turn to coat all sides with butter.
Cover with plastic wrap and towel; let rise in warm place until doubled in size, about 1 hour.
Line baking sheet with parchment paper. Gently punch down dough; turn out onto lightly floured surface. Divide dough in half; cut each half into 8 pieces.
Roll each piece into desired shape; place on baking sheet. Spray plastic wrap with cooking spray, cover rolls. Let rise in warm place 30 to 40 min or until double in size. (To make ahead, shape rolls, place on baking sheet and cover with greased plastic wrap. Refridgerate 4 hours or overnight. When ready to bake, let stand at room temperature 30 min before baking.).
Heat oven to 375*. Bake 17 to 20 min or until light golden brown.