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Combine milk, butter and sugar in a saucepan and bring to a simmer. Turn off heat and allow butter to melt completely. Cool to room temperature.
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While the milk is cooling, stir the yeast and 1 teaspoon of sugar into the water and let it soak to activate the yeast. The yeast mixture should start to become frothy within 5 minutes; if it does not, the yeast may be bad and you should start over with fresh yeast.
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Beat the egg in a large mixing bowl. Add the cooled milk mixture, the yeast, flour, and salt. Stir with a wooden spoon until thick.
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Turn out onto a floured work surface and knead for about 10 minutes until smooth and elastic. The dough should be a little tacky. You can also use a stand mixer to knead the dough.
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Place the kneaded dough in a bowl and cover with plastic wrap. Allow to rise until double in size, about 1 hour. You can place the bowl of dough in the refrigerator and allow to rise slowly overnight.
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Punch down the dough and turn it out onto a lightly floured surface. Stretch it into a rectangle with your fingertips, then use a rolling pin to stretch it further until you have a rectangle that is about 18- by 10-inches and about 1/4- thick. (If dough is shrinking back a lot, cover it with a towel and let it rest for 3 or 4 minutes; then continue rolling.)
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To make the filling, melt the butter in a small pan over medium heat. When the butter is melted, add the sugar and cinnamon and stir until smooth. Drizzle this mixture over the dough and spread it with a spatula to cover. Sprinkle on raisins, if using.
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Starting on one of the long sides, roll up the dough into a tight log. Slice the log into 12 equal pieces. Place the pieces in a greased, 10-inch cake or pie pan with the spiral showing on top. Cover with plastic and allow to proof until very puffy and almost double in size, about 1/2 hour.
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Preheat the oven to 350º.
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Remove plastic wrap and bake for 35 to 45 minutes, or until the tops are golden brown and the center is no longer doughy. Cool in the pan.
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Spread the cooled rolls with Cream Cheese Frosting.
