Combine warm milk, 1 tablespoon sugar, and yeast in a small bowl. Let sit 5 to 10 minutes until foamy.
In a stand mixer with a dough hook, combine flour, remaining 2 tablespoons sugar, and salt. Add yeast mixture, softened butter, and egg. Mix on low for 2 minutes, then medium for 6 to 8 minutes until smooth and elastic.
Place dough in a lightly oiled bowl, cover, and let rise in a warm spot for 1 hour until doubled.
Punch down dough and divide into 12 equal pieces. Shape each into a smooth ball and place in a parchment-lined 9x13 inch baking dish.
Cover and let rise again for 30 minutes until puffed and rolls are touching.
Beat softened butter with powdered sugar, honey, cinnamon, and salt until light and fluffy. Transfer to a serving bowl.
Preheat oven to 375°F (190°C). Bake rolls for 10 to 12 minutes until golden on top.
Immediately brush hot rolls generously with melted butter. Serve warm with cinnamon honey butter.