PREPARATION:

1. Combine 3 cups flour, granulated sugar, yeast and salt in large bowl; set aside.
2. Combine 1 cup milk and butter in small saucepan. Heat over low heat until mixture is 120° to 130°F. (Butter does not need to completely melt.)
3. Gradually stir milk mixture and egg into flour mixture to make soft dough that forms ball.
4. Turn out dough onto lightly floured surface; flatten slightly. Knead dough 8 to 10 minutes or until smooth and elastic, adding remaining 1/2 cup flour to prevent sticking if necessary.
5. Shape dough into ball; place in large greased bowl. Turn dough over so that top is greased. Cover with towel; let rise in warm place about 1 hour or until doubled in bulk.
6. Punch down dough. Knead dough on lightly floured surface 1 minute. Roll dough back and forth, forming loaf.
7. Cut loaf into 8 pieces. Roll 1 dough piece into 6-inch round. Place 2 pieces chocolate in center. Fold edges into center around chocolate. Place seam side down on lightly greased baking sheet. Repeat with remaining dough pieces. Place rolls 3 inches apart on baking sheet.
8. Cover rolls lightly with towel and let rise in warm place 20 to 30 minutes or until slightly puffed. Brush tops with remaining 1 tablespoon milk. Sprinkle with colored sugar.
9. Preheat oven to 400°F. Bake 12 to 15 minutes or until rolls are golden brown. Serve immediately.