1. In a small bowl, dissolve yeast in warm water and let stand until frothy, about 5 minutes.
2. In a large mixing bowl, combine flour, sugar, and salt. Stir in the yeast mixture, warm milk, melted butter, and beaten egg. Mix until a dough forms.
3. Knead the dough on a floured surface until smooth and elastic, about 5-7 minutes. Place in a greased bowl, cover, and let rise in a warm place until doubled, about 1 hour.
4. Preheat oven to 375°F (190°C). Punch down the dough and divide it into 8 equal pieces. Roll each piece into a ball, then shape into a crescent roll.
5. Place rolls on a greased baking sheet, cover, and let rise until doubled, about 30 minutes.
6. Bake in preheated oven for 12-15 minutes, or until golden brown. Serve warm.