Cool milk to lukewarm. Add yeast, dissolved in the lukewarm water, and 1 tablespoon sugar.
Sift flour and add 1½ cups to yeast mix. Beat until smooth. Cover and let rise in a warm place about 30 to 45 minutes until light and spongy. Add remaining sugar, butter, salt, lemon rind and the beaten egg, mixing well. (You may add the cinnamon now or mix with a small amount of sugar to sprinkle on top of the rolls just before baking.)
Add remaining flour to make a soft dough.
Turn out on a floured board and knead until smooth. Place in a greased bowl, turning the dough to grease it uniformly. Cover and let rise in a warm place until doubled in bulk. When dough is light, punch down a little. Shape into rolls and put on greased baking pans or in muffin tins. Cover and let rise until again doubled in bulk.
Bake about 45 minutes in a preheated 325° oven. Frost with a light powdered-sugar glaze.