Combine yeast, 1 Tablespoon sugar, and warm water in a 2-cup liquid measuring cup; let stand 5 minutes. Add milk to yeast mixture and stir.
In a food processor, combine flour, salt, remaining 2 Tablespoons sugar, and butter or margarine. Pulse until thoroughly incorporated. With food processor running, slowly drizzle yeast mixture through feed tube until ball forms. Run machine for about 2 minutes to knead dough thoroughly.
Remove dough from processor and place in a well greased bowl, turning to coat top. Cover and let stand in a warm place for 15 minutes.
Punch down dough. Divide dough in half; shape one portion of dough into 12 balls. Place in a greased 8 or 9-inch square pan. Repeat with remaining half of dough. Cover pans and let rise in a warm place for 15 minutes.
Bake at 425°F for 10-15 minutes or until rolls are golden brown.