Combine first 5 ingredients in a 2-cup glass measure. Microwave at HIGH for 3 minutes. Cool 5 minutes. Lightly spoon flour into dry measuring cups; level with a knife. Follow manufacturer's instructions for placing milk mixture, flour, yeast, and egg into bread pan, and select the dough cycle; start bread machine.
Remove dough from machine (do not bake). Turn the dough out onto a floured surface, and knead 30 seconds. Cover dough; let rest 10 minutes. Divide the dough into 24 equal portions, shaping each into a ball (cover remaining dough to keep from drying).
Combine 1/2 cup granulated sugar and rind. Dip each ball into 1/4 cup melted butter, and roll in sugar mixture.
Place balls in bottom of a 10-inch tube pan coated with cooking spray. Cover and let rise in a warm place (85), free from drafts, 45 minutes or until doubled in size.
Preheat oven to 35
Bake at 350 for 35 minutes. Cool in pan 5 minutes on a wire rack; remove bread from pan. Cool bread 15 minutes on wire rack.
