Sweet Dough: Combine milk and water in a microwave-safe measuring cup and warm until liquid is between 105-115F (40-46C).
Pour into a large mixing bowl and sprinkle yeast and a teaspoon of your granulated sugar over the surface and stir to combine. Let mixture sit for 5-10 minutes, until yeast is foamy (if your yeast doesn’t foam after 10 minutes, it is likely dead and you will need to start over).
Add melted butter, egg and egg yolk, sugar, salt, and about 2 cups (250g) of your flour. Stir until well-combined.
Gradually add remaining flour as needed until dough clings to itself in a ball and pulls away from the sides of the bowl when mixing.
Transfer dough to a clean, lightly floured surface and knead (adding additional flour if dough becomes too sticky) until dough is smooth and elastic (about 10 minutes). If using a stand mixer, knead with the dough hook attachment (about 5 minutes).
Lightly grease a large bowl with oil. Place dough in the bowl and turn to coat all over with a light layer of oil. Cover bowl with plastic wrap and let rise in a warm place until doubled in size (about 1-2 hours). Prepare filling while dough rises.
Filling: In a small mixing bowl, whisk together brown sugar, cinnamon, salt, and allspice until well-combined. Set aside.
Butter should be soft enough that it can easily be spread. If yours is cold, pop it in the microwave for several seconds at a time until it is easy to spread. Set aside.
Assembly: Lightly grease the sides and bottom of a 13×9” (33x23cm) with butter. Set aside.
Punch down dough to deflate and transfer to a clean, lightly floured surface. Use your hands or a rolling pin to form into an even 20×8” (50x20cm) rectangle.
Spread the surface evenly with your 4 Tbsp of softened butter, leaving a ½” (1.5cm) perimeter around the edges.
Sprinkle the filling evenly over the butter and use your hands to gently press it into the butter.
Starting with a longer end, tightly roll the dough into a log.
Use a sharp knife to cut into 12 even slices and transfer to prepared baking dish in four rows of three, spacing cinnamon rolls evenly. Cover tightly with plastic wrap.
If baking the next day: Place rolls in the refrigerator for up to 24 hours before baking. The next day, preheat oven to 350F (175C) and remove rolls from the refrigerator. Keep rolls covered and let sit at room temperature for about 1 hour or until puffed and the space between the rolls has been mostly filled, then proceed with the recipe. I usually prepare my cream cheese icing at this point as well, see note.
If baking the same day: Let rolls rise in a warm place until puffed (30-60 minutes). While rising, preheat oven to 350F (175C).
Once rolls have risen, uncover and bake in center rack of oven on 350F (175C) for 30 minutes or until tops are beginning to turn a light golden brown (note, if you are using a dark colored metal baking dish, start checking at 26 minutes). While rolls are baking, prepare frosting.
Cream Cheese Icing: Combine softened cream cheese and butter and stir until smooth and creamy.
Gradually stir in sugar until completely combined, then stir in vanilla extract and milk.
Allow cinnamon rolls to cool for 15 minutes in their pan before spreading frosting over each roll.