Mix ¾ cup of the flour, sugar, salt and undissolved yeast.
Heat milk, water and margarine to 120-130F.
Gradually add milk mixture to dry mixture and beat 2 minutes at medium speed of mixer. Add ¼ cup flour. Beat at high speed 2 minutes. Stir in enough additional flour to make soft dough.
On floured board knead 2 to 3 minutes. (I use dough hook on mixer. Works very well)
Divide dough into 8-12 equal pieces. Shape into balls. Place in an 8inch round pan.
Pour a 1inch depth of boiling water into large pan on bottom rack of cold oven. Set rolls on rack above water. Cover. Close even door; let rise 30 minutes.
Remove the cover. Remove pan of water.
Turn on oven to 375F. bake 20-25 minutes or ‘til rolls are light golden in color. Remove from pan to cool. Serve warm.
