Step 1
Place 1/3 cup sugar and milk in a small saucepan and stir until the sugar is dissolved. Add 1/4 cup softened butter and gently warm the mixture until the butter melts and the mixture is warm but not hot (no warmer than about 100 degrees F (40 degrees C). In a large bowl stir together the yeast with 2 1/2 cups flour until well blended and pour the milk mixture into the flour-yeast mixture. Stir in 1 beaten egg and mix until the mixture forms a sticky wet dough.
Step 2
Turn the dough out onto a well-floured surface and knead for about 10 minutes gradually kneading in 1 cup of additional flour or as needed to make a smooth elastic dough. Form the dough into a round ball place into an oiled bowl and turn the dough around in the bowl a few times to coat with oil. Cover the bowl with a cloth and allow dough to rise in a warm place until doubled about 1 hour.
Step 3
Cream 1/4 cup softened butter with 1/2 cup of sugar in a bowl until the mixture is light and fluffy and stir in dry milk powder 1/2 cup flour and the coconut until the mixture is smooth and well blended. Set the filling aside.
Step 4
Working on a floured surface punch down the dough and cut into 2 equal pieces. Cut each piece into 8 equal-sized pieces (16 pieces total). Form each piece into an oblong bun and flatten the bun with a floured rolling pin. Scoop up about 1 tablespoon of filling with a spoon and place in the center of a bun. Pull and pinch the edges of the dough together to enclose the filling in the bun. Repeat with all dough pieces and place the filled buns seam sides down onto the prepared baking sheets. Cover the buns with a cloth and allow to rise in a warm place 1 hour.
Step 5
Preheat an oven to 375 degrees F (190 degrees C). Line baking sheets with parchment paper.
Step 6
For a glossy coating beat 1 egg in a bowl and brush each bun with a little beaten egg. Sprinkle each bun with a few sesame seeds.
Step 7
Bake in the preheated oven until the buns are golden brown 10 to 15 minutes. Allow to cool before serving.