Homemade Cinnamon Rolls

Gather all ingredients.

To make the cinnamon rolls: Heat milk, water, and 1/4 cup butter together in a saucepan over medium heat until bubbling, about 5 minutes. Let cool to 120 to 130 degrees F (49 to 54 degrees C), 1 to 2 minutes.

Mix flour, white sugar, salt, and yeast together in a separate bowl. Mix egg into warm milk mixture.

Pour milk mixture and 1/3 of the flour mixture into a mixing bowl; beat using an electric mixer until moistened. Add remaining dry ingredients slowly until a dough has pulled together.

Knead on a lightly floured surface for 8 minutes. Place in a covered bowl and let rise in a dry, warm place until doubled in size, 1 to 2 hours.

Punch dough down. Roll on a lightly floured surface into a 16x12-inch rectangle. Spread 1/4 cup softened butter evenly over dough.

Mix brown sugar and cinnamon together in small bowl and sprinkle evenly over dough.

Roll up from the short side; cut into 12 even rolls.

Place rolls into a greased 9x13-inch glass baking dish. Cover and let rise in a dry, warm place, 8 hours, to overnight. When ready to bake: Preheat the oven to 375 degrees F (190 degrees C).

Bake cinnamon rolls in the preheated oven until golden, about 17 minutes.

Meanwhile, make the icing: Beat cream cheese, 1 tablespoon butter, milk, and vanilla extract in a bowl with an electric mixer until creamy; slowly mix in confectioners' sugar until smooth.

Remove cinnamon rolls from the oven and flip out onto a cooling rack; let cool slightly, 5 to 10 minutes.

Cover the tops of the rolls with icing.