In a large bowl, combine 1 cup of flour and yeast.
In a small saucepan, heat milk, sugar, butter, and salt until warm.
Add milk mixture to flour mixture; add egg. Beat with an electric mixer on low speed for 30 seconds.
Stir in remaining flour to make a soft dough.
Knead on a floured surface until smooth.
Place in a greased bowl, cover, and let rise until doubled.
Punch down dough, divide into 16 pieces, shape into balls.
Arrange balls in a greased 9-inch round pan.
Sprinkle with colored sprinkles.
Bake at 375°F for 20-25 minutes or until golden brown.