Combine water and yeast in a small bowl; let rest 5 minutes. Heat milk and butter until warm (100° to 110°F); butter does need to completely melt.
Pour milk into large mixer bowl with sugar and salt. Add egg, 1 cup flour and yeast mixture. Beat on medium speed for 3 minutes. Gradually add enough flour to make a soft dough. Turn out onto a lightly floured surface and knead until smooth and elastic, about 6 to 8 minutes. Place in a greased bowl, turning once to coat. Cover and let rise in a warm, draft-free place, about 1 hour, until doubled in bulk.
Punch dough down, let rest 10 minutes. Roll into a 12 x 15-inch rectangle on a lightly floured surface. Spread with the softened butter. Combine brown sugar and sugar, toss with blueberries and pecans. Sprinkle filling evenly over dough. Roll up jellyroll style. Slice into 12 rolls and place in greased muffin cups.
Combine streusel topping ingredients, cutting in butter with pastry blender or 2 forks. Sprinkle over rolls. Cover and let rolls rise in warm, draft-free place until doubled in size, about 30 minutes.
Bake in a preheated 350°F oven for 20 minutes or until golden brown. Let cool 2 minutes before removing to cool wire racks.