Combine 3 1/2 cups flour, sugar, salt and undissoloved yeast in bowl.
Attach bowl and dough hook. Turn to speed 2 and mix for 1 minute.
Combine milk, water and margarine in a saucepan. Heat over low heat, until liquids are very warm (120 to 130). Margarine does not need to melt.
Turn to speed 2 and gradually add liquid to flour mixture, about 30 seconds. Mix 1 minute longer. Continue on speed 2, adding remaining flour, 1/2 cup at a time, as needed. Mix until dough clings to hook, about 5 minutes.
Knead dough on speed 2 for 7-10 minutes longer, or until dough is smooth and elastic. Stop.
Place in greased bowl, turning to grease top. Cover, let rise in a warm place 15 minutes.
Turn dough out onto floured board. Divide in half and shape as desired. Cover; let rise in slightly warm oven (about 90 degrees) for 15 minutes or until doubled in bulk [usually 15 minutes works just fine!].
Bake at 425, for 12 minutes, or until nice and brown. Remove from baking sheets and cool on wire racks.
I usually make balls. But for something fancy you can make one of the following:.
Curlicues: Divide dough in half and roll each half to 12x9 inch rectangle. Cut 12 equal strips about 1 inch wide. Hold one end of strip firmly and wind tightly to form a coil, tucking ends underneath. Place on greased baking sheets about 2 inches apart.
Cloverleafs: Divide dough into 24 equal pieces. Form each piece into a ball and place in greased muffin pan. With scissors, cut each ball in half, then quarters, cutting through to almost bottom of rolls.