In a large bowl, combine yeast and 2 tablespoons water; let stand 5 minutes. Add the oil, sugar, beaten egg, flour and like warm milk to the yeast mixture; stir until smooth. Cover lightly and refrigerate for 4 hours.
Preheat oven to 350 ºF. Stir batter, spoon into greased muffin pans, filling about ¾ full. Bake for 25 minutes or until golden.