Prepare the Dough. In a small bowl, warm the milk to about 110°F and sprinkle the active dry yeast over the top. Let it sit for 5 minutes until foamy. In a large mixing bowl, combine the flour, sugar, salt, and egg. Gradually add the milk-yeast mixture and melted butter, mixing until a soft dough forms.
Knead and Rise. Turn the dough out onto a floured surface and knead for about 8-10 minutes until smooth and elastic. Place the dough in a greased bowl, cover it, and let it rise in a warm place for 1-1.5 hours or until doubled in size.
Prepare the Apple Filling. While the dough is rising, peel, core, and dice the apples into small pieces. In a skillet, melt the butter and sauté the apples with brown sugar and cinnamon until tender, about 5-7 minutes. Set aside to cool.
Roll and Fill the Dough. Once the dough has risen, roll it out into a large rectangle on a floured surface. Spread softened butter evenly over the dough, then sprinkle the cinnamon and brown sugar mixture across the surface. Add the cooled apple filling.
Roll and Cut. Carefully roll the dough from one long edge to the other, creating a log. Slice the log into 9 even rolls using a sharp knife or dental floss.
Second Rise. Place the rolls into a greased baking dish, cover with a towel, and let them rise for another 30 minutes.
Bake to Perfection. Preheat your oven to 350°F. Bake the rolls for 25-30 minutes or until golden brown and cooked through. Your kitchen will smell heavenly!
Top With Caramel. Drizzle the caramel sauce over the warm apple cinnamon rolls once they’re out of the oven.