Preheat the oven to 375F.
In a small bowl, mix warm water with yeast and 1/2 tsp sugar. Allow to proof until foamy; about 5 minutes. Add the powdered milk, 3 cups of flour, remaining 1/2 cup sugar, cream cheese, salt, and the yeast mixture to the bowl of a stand mixer. Mix until the dough begins to pull away from the side of the bowl, adding flour as needed to create a slightly sticky dough.
Turn the dough out onto a floured surface and knead a few times. Place the dough in a lightly greased bowl, cover with plastic wrap, and allow to rise for about an hour, or until it's doubled in size.
Punch the dough down and turn it back onto the floured surface, and knead a few times. Cut the dough in half and roll each half until its 1/2" thick. Cut into rounds with a biscuit cutter. Place each piece around a lightly greased skillet. Cover and let it rise again until doubled in size.
While the dough is rising, mix the melted butter with parmesan cheese, parsley, garlic, remaining 2 tsp salt, and pepper.
Brush the rolls generously with the garlic parmesan butter. Bake until golden brown, about 12 minutes.