Mix the lukewarm water and yeast in a small bowl and leave to sit for a few minutes while the mixture becomes frothy. In a large bowl, mix the caster sugar, bread flour and salt and make a well in the centre. Pour the yeast mixture and oil into the flour mixture and mix until combined. Knead for 5 minutes.
Return the dough to the mixing bowl and cover with plastic wrap and/or a tea towel. The dough will rise in 1 hour when left in a warm environment.
Punch the dough gently to release the air bubbles, then roll dough into a log, and divide into 12 even portions. Roughy shape them into round rolls and place on the prepared baking trays.
Brush the rolls with the beaten egg and top with the grated cheese and chopped bacon. Place the rolls into a warm spot and allow to rise for a second time (30 minutes).
Bake the rolls until they are golden on top and sound hollow when gently tapped.