Heat the milk or buttermilk in a small pan over medium heat. Once small bubbles begin to forms around the sides of the pan, stir in the ¼ cup of sugar, the butter, and the salt. Do not allow the mixture to boil ever. Stir continuously until butter is melted. Remove from the heat and set aside to allow to cool. (I usually put it in the fridge for awhile to let it cool quicker)
When the milk mixture is just about cool enough, begin the next step.
In a large bowl combine yeast, warm water and the sugar; let mixture stand for 10 minutes until "proofed"... it will be foamy.
Once the yeast has proofed, add the milk mixture, the egg and 2 cups of the flour.
I use my stand mixture and allow it to run for about 2 minutes. The dough will be sticky. Now add the last cup of flour and use the bread attachment to knead for about 5-6 minutes or until your dough is soft and smooth.
Place the dough into a greased bowl. Cover with plastic wrap and allow to rise in a warm spot about 1 hour or until doubled in size.
Punch the center of the dough down and turn it out onto a floured work surface.
Roll the dough out to about a ¼ in thickness. I use a rectangle or square cookie cutter to cut out the dough, but you can use a knife, pizza cutter or whatever you have. Place your cut out pieces on large pan, cover them and allow to rise in a warm spot for another 30 minutes or until doubled in size.
At this point, preheat your oven to 400 F.
Spray a baking pan with cooking spray. Place the pieces of dough 2" apart on the pan.
Bake for 7-10 minutes.
Remove from oven and sift the powdered sugar over them generously while still warm.
Enjoy piping hot and fresh for best taste. Serve with chocolate sauce for dipping.