In a small bowl, dissolve yeast in warm water. Let stand until creamy, about 10 minutes. Stir in honey and 3/4 cup flour. Whisk until smooth. Cover bowl and let stand for 1 1/2 hours.
In a large bowl, combine butter pieces with remaining cup flour. Pour in yeast batter and stir to moisten. Turn dough onto lightly floured surface, pat dough down and roll into a rectangle. Fold 1/3 of dough toward center then fold other side of dough over first 1/3. Lift dough and scrape work surface clean. Sprinkle area with flour and repeat; rolling and folding 3 more times. Dough must be hard; if not, freeze for 45 minutes.
Pat dough into rectangle. Cut into 3 parts, 1 part for each 4 croissants. Work with one piece at a time, holding others in refrigerator until ready to use. Roll each piece individually into 1/4 inch thick rectangles. Cut into two pieces. Cut each piece crosswise diagonally to form 4 triangles. Roll from wide end to point and curve ends to form a crescent shape. Place on ungreased cookie sheets.
In a small bowl, beat together egg and water. Brush croissants with egg wash and set aside to rise for 1 hour. Meanwhile, preheat oven to 375 degrees F (190 degrees C). Glaze croissants with the egg mixture once more before baking.
Bake in preheated oven until puffed and brown, about 15 minutes. Let cool slightly and serve.
