In a small bowl, combine the warm water and active dry yeast. Let sit for about 10 minutes, until the mixture is foamy.
Add the yeast mixture, milk, melted butter, granulated sugar, salt, and egg to the bowl of a stand mixer fitted with the paddle attachment. Mix until combined.
Gradually add 2½ cups flour, about 1 cup at a time, mixing until a soft dough forms. Add additional flour as needed, up to 3 cups, until the dough is soft but not overly sticky.
Transfer the dough to a greased bowl, turning once to coat. Cover tightly with plastic wrap and let rise for 1–1½ hours, or until doubled in size.
Transfer the dough to a lightly floured surface and knead for 1–2 minutes. Roll into approximately a 6×22-inch rectangle.
For the Filling:
In a small bowl, stir together the brown sugar and cinnamon.
Brush the melted butter evenly over the dough. Sprinkle the cinnamon-sugar mixture evenly over the butter.
Starting at one long side, tightly roll the dough into a log.
Cut the log into 24 equal pieces, approximately 1 inch thick.
Spray 2 mini muffin pans with nonstick cooking spray. Place one roll into each muffin cup with the spiral side facing up.
Cover with plastic wrap and let rise for 30–60 minutes, or until nearly doubled in size.
Meanwhile, preheat the oven to 350°F.
Bake for 15–17 minutes, or until the edges are lightly golden brown. Remove from the oven and allow the rolls to cool slightly.
For the Cream Cheese Frosting:
Beat the softened cream cheese and butter together until smooth and creamy.
Add the powdered sugar and 1 tablespoon milk. Beat until smooth.
Mix in the vanilla extract. If the frosting is too thick, add a small amount of additional milk. If it is too thin, add additional powdered sugar.
Spread the cream cheese frosting over the warm cinnamon rolls. Serve and enjoy!
Notes
Store an airtight container at room temperature for up to 2 days or refrigerate for up to 1 week.