1. In a large mixing bowl, combine flour, yeast, and sugar.
2. Add warmed milk, melted butter, and beaten egg. Mix until a dough forms.
3. Knead the dough for about 5-7 minutes until smooth and elastic.
4. Place dough in a greased bowl, cover, and let rise in a warm place for about 1 hour or until doubled in size.
5. Preheat oven to 375°F (190°C).
6. Divide the dough into 12 equal pieces. Flatten each piece and wrap it around a sausage, sealing the edges.
7. Place the kolaches on a baking sheet, cover, and let rise for another 20 minutes.
8. Bake in preheated oven for 15-20 minutes or until golden brown.