Warm the milk slightly, stir in the sugar, and crumble in the yeast. Let it stand for 10 minutes, until foamy.
In a large bowl, combine the flour and salt. Add the cubed butter and rub it in with your fingertips until the mixture resembles coarse crumbs.
Pour in the yeast mixture and the egg, then knead into a soft, pliable dough.
Cover with a kitchen towel and let rise in a warm place for about 1 hour, or until doubled in size.
On a lightly floured surface, roll out the dough to about ¾ inch (2 cm) thickness. Use a sharp knife to score a diamond pattern on the surface.
Use a small round cookie cutter to cut out the pogácsa shapes and place them on a baking sheet lined with parchment paper.
Brush the tops with beaten egg and, if desired, sprinkle with grated cheese.
Preheat the oven to 350°F (180°C) and bake the pogácsa for 18-20 minutes, or until golden brown.
Let cool for a few minutes, then serve fresh!
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