In a large mixing bowl, combine the flour, granulated sugar, instant yeast, and salt. Mix well.
In a separate bowl, whisk together the warmed milk, melted butter, egg, and vanilla extract until smooth.
Pour the wet ingredients into the dry ingredients and mix until a dough forms. Knead the dough on a floured surface for about 5 minutes until smooth and elastic.
Place the dough in a greased bowl, cover with a clean kitchen towel, and let it rise in a warm place for about 1 hour or until doubled in size.
Preheat your oven to 375°F (190°C) and grease a muffin tin.
Once the dough has risen, roll it out on a floured surface into a rectangle about 1/4 inch thick. Spread the softened butter evenly over the dough, then sprinkle the cinnamon sugar mixture on top.
Starting from one long edge, roll the dough tightly into a log. Cut the log into 12 equal pieces.
Place each piece upright in the greased muffin tin, allowing them to rise for another 30 minutes.
Bake in the preheated oven for 15-20 minutes or until golden brown. Let cool slightly before dusting with powdered sugar, if desired.