In a large mixing bowl, combine the warm water, yeast, and sugar. Allow it to sit for about 5 minutes until frothy.
Add the flour and salt to the yeast mixture. If using olive oil, add it now. Mix with a wooden spoon or spatula until a shaggy dough forms.
Knead the dough on a floured surface for about 10 minutes until smooth and elastic. Alternatively, you can knead the dough in a stand mixer with a dough hook on medium speed for about 7-8 minutes.
Place the kneaded dough in a lightly greased bowl. Cover with a clean kitchen towel and let it rise in a warm place for about 1 hour, or until doubled in size.
Once risen, punch down the dough to release the air. Transfer it to a floured surface and divide it into 12 equal pieces.
Shape each piece into a tight ball and place them on a baking sheet lined with parchment paper, spaced apart.
Cover the rolls with the kitchen towel and let them rise for an additional 30 minutes.
Preheat the oven to 220°C (425°F). Place an empty shallow baking pan on the bottom rack of the oven to create steam.
Just before baking, use a sharp knife to make a small slash in the top of each roll. Pour the additional water into the shallow baking pan to create steam.
Bake the rolls for 20-25 minutes, or until golden brown and crusty. They should sound hollow when tapped on the bottom.
Remove from the oven and allow to cool slightly on a wire rack before serving.