In a small bowl, combine yeast with 1 teaspoon granulated sugar and warm milk. Let sit for 5 minutes or until yeast is activated and mixture is foamy.
In a large bowl, sift together bread flour, ¼ cup sugar, and salt. Add yeast mixture, egg, and butter and mix to combine. Knead until dough is smooth, about 7-8 minutes. Transfer dough to a clean bowl, cover, and let rise in a warm place until doubled in size, about 1 hour.
Meanwhile, prepare peanut topping. Sift together flour, powdered milk, baking powder, baking soda, and salt in a medium bowl. In a separate bowl, beat together softened butter with peanut butter until smooth. Add sugar, egg, and honey, stirring until well-combined. Add flour mixture and mix until combined. Keep in fridge until ready to use.
Punch down dough and divide into 12 pieces. Roll each piece into a ball and place them on two lined baking sheets, 6 rolls on each. Cover and let rise for 1 hour in a warm area.
Preheat oven to 350 degrees F.
Portion peanut topping into 12 equal pieces. Use the palm of your hand to flatten each piece until it's ⅛ inch thick. Brush tops of rolls with egg wash and gently press peanut topping on top. Bake bread for 15-20 minutes or until topping is golden brown. Let cool slighlty and serve warm or at room temperature.