In a small bowl, combine the warm water, active dry yeast, and granulated sugar. Stir gently and let it sit for 5 to 7 minutes until the mixture is frothy.
In a large mixing bowl, whisk together the all-purpose flour and 1 teaspoon salt.
Add the yeast mixture and 2 tablespoons olive oil to the flour mixture. Stir with a wooden spoon until a shaggy dough forms.
Turn the dough onto a lightly floured surface and knead for about 8 minutes until the dough is smooth and elastic. If the dough is too sticky, sprinkle with a little more flour as needed.
Place the dough in a lightly oiled bowl, cover with a clean kitchen towel or plastic wrap, and let it rise in a warm place for about 1 hour or until doubled in size.
While the dough is rising, prepare the garlic butter sauce: in a small saucepan, melt the unsalted butter over low heat. Add the minced garlic, 1/4 teaspoon salt, and chopped parsley. Stir and cook for 2 minutes until fragrant. Remove from heat and set aside.
Once the dough has doubled in size, punch it down and turn it out onto a floured surface.
Divide the dough into 8 equal pieces. Roll each piece into a 12-inch long rope.
Tie each rope into a loose knot and pinch the ends to seal.
Heat a large oven-safe skillet over medium heat and add a small drizzle of olive oil to coat the bottom.
Place the knots in the skillet, leaving a little space between each. Cook for 2 to 3 minutes until the bottoms are golden brown.
Flip the knots and cook for another 2 minutes on the other side.
Brush the tops generously with the garlic butter sauce.
Transfer the skillet to a preheated oven at 375°F (190°C) and bake for 8 to 10 minutes until the knots are cooked through and golden.
Remove from the oven and brush again with the remaining garlic butter sauce.
Serve warm.