Activate the yeast:Pour the warm milk into a large mixing bowl. Sprinkle the active dry yeast over the milk and add about 1 teaspoon of the granulated sugar. Stir gently and let the mixture stand for 5-10 minutes, until foamy and bubbly on the surface.
Prepare the dough:Add the remaining granulated sugar, brown sugar, melted butter, egg, and vanilla extract to the activated yeast. Mix until well combined. Gradually add the flour, salt, and cinnamon, mixing until a soft dough begins to form.
Knead the dough:Knead the dough for 8-10 minutes, either by hand or with a stand mixer fitted with a dough hook. The finished dough should be smooth, soft, and slightly tacky. Add only a small amount of additional flour if it is extremely sticky.
Let the dough rise:Lightly coat the dough and mixing bowl with oil. Cover the bowl with plastic wrap or a clean kitchen towel and place it in a warm spot. Let the dough rise for approximately 1 hour, or until doubled in size.
Prepare the apples:While the dough is rising, peel and core the apples. Cut them into small, evenly sized cubes so they cook evenly and fit easily inside the rolls.
Cook the apple filling:Place the diced apples, brown sugar, cinnamon, salt, and vanilla extract in a saucepan. Cook over medium heat for 10-15 minutes, stirring occasionally, until the apples are tender but still hold their shape.In a small bowl, combine the cornstarch and water until smooth. Pour the mixture into the saucepan and stir well. Cook for another 1-2 minutes, until the filling thickens and becomes glossy. Remove it from the heat and let it cool before adding it to the dough. Roll out the dough:Transfer the risen dough to a lightly floured work surface. Roll or gently stretch it into a large, evenly shaped rectangle.
Add the filling:Spread the softened butter evenly over the dough. Spoon the cooled apple filling over the butter and distribute it evenly, leaving a small border around the edges.
Cut and shape the rolls:Cut the filled dough lengthwise into 12 even strips. Carefully roll each strip into a spiral, keeping the apple filling tucked inside. Gently adjust the shape of each roll without wrapping it too tightly.
Let the rolls rise again:Arrange the rolls in a greased 9 × 13-inch baking dish, leaving a little space between them. Cover the dish and let the rolls rise in a warm place for approximately 30 minutes, until puffy.
Bake the rolls:Preheat the oven to 350°F (180°C). Bake the Apple Cinnamon Rolls for 25-30 minutes, until puffed, golden brown, and fully baked in the center. Let them cool in the baking dish for 5-10 minutes before adding the glaze.
Prepare the cream cheese glaze:Place the softened cream cheese, softened butter, vanilla extract, salt, and powdered sugar in a mixing bowl. Beat with a whisk or hand mixer until smooth, creamy, and spreadable.
Glaze and serve:Spread the cream cheese glaze over the warm rolls. The warmth will soften the glaze and allow it to melt slightly into the apple-filled layers. Serve the rolls warm.