In a small sauce pan, on medium heat, heat both milk and butter. As soon as the butter is melted remove from heat and let sit till lukewarm.
In a bowl, mix together 2 ½ cups flour, salt, and yeast till combined.
Using an electric mixer, fitted with a dough hook, add milk mixture to the flour mixture.
Add the egg and water.
Slowly add the remaining 1 cup of flour into the bowl a little at a time until the dough balls up and pulls away from the sides. Approximately 5 minutes.
Remove dough hook and place damp cloth over the dough and let sit for approximately 10 minutes.
In another bowl, mix together the brown sugar, cinnamon and softened butter.
Once your dough has risen, using a floured surface and rolling pin, roll out the dough till its approximately a centimeter thick in a rectangle shape.
Spread the brown sugar mixture across the top of the rolled out dough.
Starting at one end, begin to roll the dough into a tube shape.
Cut cinnamon rolls between a ½ inch to 1 inch thick.
Into a hot waffle iron they go till they just begin to golden.
For the cream cheese glaze, whisk together the softened cream cheese, powdered sugar and milk.
Drizzle glaze over the waffles as well as fill a plastic egg with extra glaze for each serving.