Using a stand mixer, add 1 1/4 cups flour, yeast, sugar, onion, dill seed and salt to mixer bowl; mix well and set aside. In a saucepan or microwave-safe bowl, heat cottage cheese, water and butter to 120-130°F (butter does not need to melt). Add to flour mixture. Add egg. Blend at low speed, using a paddle attachment, until moistened; beat 3 minutes at medium speed. On low speed, gradually add in enough remaining flour to make a stiff batter. Cover; let rise in warm place until doubled, about 30 minutes.For hand mixing: following above steps, mix ingredients in large mixing bowl using a wooden spoon or dough whisk.
Stir down batter. Spoon into greased small muffin pan cups, filling 1/2 full. Tap pans on table to settle the batter. Cover; let rise until double, about 20 to 30 minutes.
Preheat oven to 350°F.
Bake for 15-20 minutes, or until golden brown. Remove from pans. Brush with soft butter and sprinkle with coarse salt. Cool on rack.