Proof the yeast: Place the milk and butter into a microwave-safe bowl. Microwave on 30-second intervals, stirring after each interval until the butter has melted and the milk is warm to the touch but not hot. If you need to, let the mixture sit for a few minutes until it is warm and not hot.  Whisk (affiliate link) in the 2 tablespoons of sugar and yeast, pour the mixture into the bowl of your stand mixer fitted with the dough hook. Cover and allow the mixture to sit for 5 minutes or until foamy on top. If you do not have a mixer you can use a large mixing bowl and use a wooden spoon or wood or silicone spatula to mix in the egg and flour.

Using instant yeast: If you are using instant yeast you can skip the proofing step. Add the yeast and sugar to the flour mixture. You will still need to heat the milk and butter before adding the egg. Make sure the milk mixture is warm and not too hot, you don’t want to cook the eggs.

Knead the dough: While the yeast is proofing, whisk (affiliate link) the egg in a small bowl and set aside. In a medium bowl, whisk (affiliate link) the flour and salt. When the yeast has proofed, set your mixer on a low speed using the dough hook and add the eggs to the bowl of the mixer. Next with your mixer still on a low speed add ⅓ of the flour mixture to the bowl, when the flour is mostly incorporated add the next ⅓ of the flour. Scrape down the sides of the bowl with a spatula as needed. When you have added all of the flour and it has incorporated, switch your mixer to medium speed and continue to beat the dough, it will start to pull away from the sides of the bowl, continue to beat for another 4-5 minutes. Or you can knead by hand on a lightly floured surface for 5 minutes. Your dough will be sticky but if it is too sticky add 1 teaspoon of flour at a time if needed to make a soft but tacky dough. Be careful not to add too much flour, adding too much flour will dry out your dough.

1st Rise: Lightly grease a large bowl with oil or a non-stick spray. Place the dough in the bowl turning to coat all sides. Cover the bowl with a clean kitchen towel, or plastic wrap and let the dough rise 1-2 hours or until doubled in size. While the dough is rising, grease the bottom and sides of a 9x13 baking dish. 

Prep the filling: While the dough is rising, mix the brown sugar and cinnamon in a small bowl, cover the bowl and set aside. Peel, core and dice the apples into ½ inch - 1 inch size.

Roll out the dough: Punch down the dough to release the air. Place the dough on a lightly floured work surface, lightly flour your rolling pin. Roll your dough into a 12x18 rectangle. If your dough shrinks back after rolling, stop and  cover the dough and allow it to rest for 10 minutes to relax the gluten.

Filling: Spread the softened butter over the dough, sprinkle the brown sugar and cinnamon mixture over the dough, spread the diced apples, and drizzle the caramel over the surface. Carefully and tightly roll the dough to form an 18 inch log. Cut into 12 pieces using a serrated knife using the sawing motion.

2nd Rise: Place rolls cut side down in your baking pan. Cover and let rise for 45-60 minutes. Preheat the oven to 350 degrees while the rolls are rising. Uncover and place on the middle rack of the oven and bake for 25-30 minutes or until lightly brown on top. Remove from the oven and cool on a wire rack. 

Cream topping: While rolls are baking combine the room temperature cream cheese, powdered sugar, heavy whipping cream, vanilla extract, and salt in a medium bowl and whisk (affiliate link) until smooth and creamy. When the rolls have cooled a bit but still warm, spread the topping over the rolls. Drizzle the rolls with more of the caramel sauce and serve. These Caramel Apple Cinnamon Rolls are best enjoyed fresh out of the oven with an extra drizzle of caramel.