In a small bowl mix 2 tablespoons warm water, sugar, and the yeast in a small bowl and set aside for 5 minutes until it becomes bubbly and has activated.

In a large bowl mix the egg, milk, water, flour, 1/4 cup butter, and salt.

Add the yeast and kneed the dough for 3-5 minutes. Spread a think layer of oil on the dough and cover for 20 minutes to rise.

Roll dough into 14x10 inch rectangle. Spread the butter on the dough, sprinkle the sugar and cinnamon. Roll and cut into 12-14 1 inch slices. Place 1 cm apart in a greased pan. Cover and let rise for another 30-45 minutes.

Bake rolls 350 degrees for 20-25 minutes, until they begin o turn golden in color.

For the Glaze:

Mix the powdered sugar, milk, and vanilla.

Drizzle on slightly cooled cinnamon rolls.