In a large bowl, mix the yeast, salt, nutmeg and 3 cups of flour. In a small saucepan, heat the milk, butter and honey to 120°-130°. Combine the wet ingredients with the dry mix and beat on medium speed for 2 minutes. Add in the squash and beat on high for 2 minutes. Stir in enough remaining flour to form a soft dough because the dough initially will be sticky.
Put some flour on a surface and turn the dough onto it; knead the dough for about 6-8 minutes, until smooth and elastic. Place the dough in a bowl with grease in it and then turn the dough so the top has grease as well. Cover the dough with plastic wrap and in a warm place, let it rise for about 1 hour, until the dough has doubled.
Punch down the dough and turn it onto a lightly floured surface; divide and shape into 24 balls. Grease two 9-inch round baking pans and divide dough into the two. Cover with kitchen towels and once again let them rise in a warm place for about 45 minutes, until it has doubled in size.
Preheat oven to 375°. Brush tops with beaten egg; sprinkle with seeds. Bake until dark golden brown, 20-25 minutes. Cover loosely with foil during the last 5-7 minutes if needed to prevent overbrowning. Remove from pans to wire racks; serve warm.
