Soften yeast in 4 oz. of the water. Add the remainder of the water (6oz) in another bowl. Add the sugar, salt, shortening and dry milk in the bowl. Add 1 1/4 c flour and mix well. Add softened yeast and beaten egg. Add the remaining flour (2-3/4 cup) to make a soft dough. Knead until smooth and satiny. Place dough in greased bowl and grease top surface of dough. Cover and let rise until double. Knead and shape rolls. Let them rise again until double. Bake at 350* for 20-25 minutes. This dough can be used for cinnamon rolls.