In the bowl of an electric mixer fitted with the dough hook attachment, stir the yeast, water, milk, sugar, 2 tablespoons of the butter, egg, and salt until well combined. Gradually add the flour and knead on medium-low speed until the dough pulls away from the sides of the bowl. Turn off the mixer and let the dough rest for 3 to 5 minutes. Continue to knead the dough on medium-low speed for another 5 minutes, or until the dough is soft and smooth. If it seems too sticky, add more flour, 1 tablespoon at a time.

Transfer the dough to a large greased bowl. Cover the bowl with plastic wrap and let the dough rise until doubled in size, about 45 minutes to 1 hour.

Punch the dough down and turn it out onto a lightly floured work surface. Roll the dough into a 1-inch thick rectangle. Cut the dough into 2-inch squares. Transfer the squares to a baking sheet and cover with plastic wrap. Let rise until doubled in size, about 45 minutes to 1 hour.

Preheat the oven to 350°F. Bake the rolls for about 15 minutes, or until golden brown. Brush the baked rolls with the remaining 1 tablespoon melted butter.

In the bowl of an electric mixer fitted with the whisk attachment, beat the butter for 30 seconds, or until pale in color. Add the powdered sugar, honey, and cinnamon and beat until well combined, light, and fluffy, about 1 to 2 minutes. Serve immediately or store, covered, in the fridge for up to 5 days. Bring to room temperature before serving.

Serve the rolls warm with the cinnamon butter.