Combine the yeast, 1 teaspoon of sugar, and lukewarm milk in a small bowl and let it sit for 5 minutes—you should see it become foamy, which confirms your yeast is active and alive. While the yeast blooms, whisk together the remaining sugar and honey in a separate small bowl to combine them evenly. This blooming step is crucial because it wakes up the yeast and ensures it will properly leaven your buns.
In a large mixing bowl, combine 2.5 cups of flour with the salt and stir to distribute it evenly. Create a well in the center of the flour mixture and pour in the foamy yeast mixture from Step 1, along with the honey-sugar mixture, the egg, and softened butter. Mix everything together with a wooden spoon or your hands until a shaggy dough forms—don't worry if it looks rough and slightly sticky at this point.
Let the dough rest in the bowl for 5 minutes to allow the flour to fully hydrate—this makes kneading easier and more effective. Turn the shaggy dough onto a lightly floured work surface and knead for about 8-10 minutes, gradually adding the remaining 0.25 cups of flour as needed. The dough should become smooth, elastic, and slightly tacky but not sticky; I like to knead until it springs back when I poke it with my finger, which signals proper gluten development.
Place the kneaded dough into a clean, lightly oiled bowl, turning it to coat all sides with oil to prevent drying. Cover the bowl with plastic wrap or a damp kitchen towel and let it rise at room temperature for 30 minutes—the dough should increase in volume but doesn't need to double at this stage. This bulk fermentation develops flavor and makes the dough easier to shape.
Turn the risen dough onto a lightly floured surface and gently press it down to release excess gas. Divide the dough into 8 equal pieces (I weigh mine for consistency, but eyeballing works too), then roll each piece into a smooth 6-inch log by gently stretching and rolling it under your palms. Place the shaped logs on a parchment-lined baking sheet, spacing them about 2 inches apart to allow room for expansion.
Cover the shaped buns with plastic wrap or a kitchen towel and let them proof for 15 minutes at room temperature—they should increase in volume and feel slightly springy when gently poked. While the buns proof, beat together the second egg and 1 tablespoon of water to create an egg wash. After the 15-minute rest, brush the egg wash generously over the top and sides of each bun to create a beautiful golden shine when baked.
Preheat your oven to 350°F and bake the buns for 12 to 15 minutes, until they're deep golden brown on top. The buns are done when they sound hollow if you tap the bottom and the internal temperature reaches about 190°F. Remove from the oven and let them cool on the baking sheet for a few minutes before serving—they're best enjoyed warm with your favorite hot dog and toppings!