Combine water, yeast & sugar in small bowl; let stand 10 min. or until foamy.
Meanwhile, whisk 2 c. flour & 1/2 t. salt in small bowl. Beat milk, egg & 1T. melted butter in large bowl, at low speed until blended. Beat in yeast mixture and 1 T. chives. Slowly beat in flour mixture until dough forms. Beat at medium speed 4 - 5 minutes or until dough is soft and pulls away from sides of bowl, adding flour 1T. at a time if dough is sticky.
Place dough in greased medium bowl; cover & let rise in warm place 1 hr. or until doubled.
Meanwhile melt 1/2 c. butter in small saucepan over low heat. Add garlic; cook 2 min. to infuse flavor, stirring constantly to keep garlic soft and light in color. Stir in 1 T. chives right before using.
Brush 1- 1 1/2 qt glass baking dish with some of garlic butter. Gently press dough down todeflate. Divide dough into 24 pieces; form into 1 in. balls. Arrange in layers in pan. Cover loosely with plastic wrap. Let rise 45 min. or until
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