Dissolve 2 Tablespoons water and yeast for 3 minutes. Combine water, milk, sugar, salt and yeast together, gradually beat in 2 cups flour. Cover with cloth. Let rise in warm area, 85 degrees F., for about 1 1/2 hours or until dough collapses back into the bowl. (The oven with oven light on would be the perfect place to let the dough rise.)
Beat in butter. Knead in remaining flour. Press dough to a thickness of 1/2" and cut out with muffin rings. Let stand on lightly greased baking sheet (or silicon mat) until dough has doubled in size. Transfer muffins onto a fairly hot, well buttered griddle. Remove muffin rings. Cook until light brown. Turn once. Cool on rack. Serve with butter and marmalade.