In a small saucepan over medium-low heat add the ¾ cup milk and ⅓ cup softened unsalted butter. Stir until the butter has melted and remove from heat. Let stand until lukewarm temperature.
In a large mixing bowl whisk together 2 ¼ cups of the 3 ¼ cups all-purpose flour, 2 teaspoon instant yeast, ¼ cup granulated sugar, and ½ teaspoon salt.
Add the flour mixture to a stand mixer with the dough hook attached. Add the 1 egg and ¼ cup water and start mixing on medium-low speed.
Slowly add in the milk mixture and remaining flour until the dough starts to form and become smooth. Let the dough rest for 10 minutes.
On a lightly floured surface, roll the dough into a large 9×15-inch square. About ¼-½ inch thick.
Filling
In a small bowl combine the 1 tablespoon cinnamon, ¼ teaspoon nutmeg, and ¾ cup packed brown sugar for the filling. Spread the 5 tablespoons softened unsalted butter onto the dough keeping it about a ½ inch away from the edge.
Sprinkle the cinnamon and brown sugar on top of the softened butter. Sprinkle with 2 chopped granny smith apples.
Roll up the dough from the long side into a log and pinch the seams. Cut into 9-12 slices depending on how thick you want your cinnamon rolls.
Place in a greased 9×13 inch pan or 9-inch pie pan cover with a damp cloth and let rise for 30 minutes.
While the cinnamon rolls rise preheat the oven to 375 degrees Fahrenheit. Bake for 30 minutes or until just golden brown on the tops.
Caramel Glaze
In a medium saucepan, melt the ¼ cup unsalted butter and ½ cup brown sugar until the sugar dissolves.
Add the ¼ cup sweetened condensed milk and bring to a boil over medium-high heat for about 2-3 minutes. Pour over the warm cinnamon rolls.