Mix the yeast and 1/4 cup warm water and allow the yeast to proof. Make sure the water is not too hot, or it will kill the yeast.
Put the butter and milk into a microwave-safe bowl and heat one minute and thirty seconds on high. Butter should be mostly melted.
Mix together 2 cups of the flour, sugar, and salt in a large bowl. If you have a Kitchen Aid mixer, add the ingredients to the mixer bowl.
When the milk mixture has cooled slightly, add it to the mixer bowl and mix well with the paddle attachment.
Add the egg and mix well.
Pour in your yeast and water mixture and mix again.
Switch to the dough hook (if using a mixer) and add remaining flour in increments until dough leaves the side of the bowl. It should be very soft and slightly sticky. When you put your finger in it, it should pull a little, but not totally stick to your finger and stretch out.
Continue to knead the dough with the dough hook (or by hand) for about five minutes. Allow to rest while you make the filling.
For the Filling
Add the chopped apples, 1 Tbsp. butter, and 1 Tbsp. sugar to a pan on the stove over medium heat. Saute until the apples start to soften, about five minutes.
In a separate bowl, mix the 1/2 cup softened butter, 1/2 cup packed brown sugar, corn starch and cinnamon.
To Make the Rolls
Roll dough on clean countertop or large cutting board to about 12x16 inches. Spread filling on top of dough, leaving the far edge bare so dough will stick together after rolling. Add the sauteed apples and walnuts to the top of the filling.
Start rolling the dough from the long edge and roll to the other edge.
Get a 12-inch piece of sewing thread. Slip the thread under the edge of the dough, cross it over the top, and pull the string until it completely cuts through the dough. Repeat until you have cut all the rolls.
Place rolls in a greased 9x13 inch pan.
Cover and let rise in a warm place for about 30 minutes or until rolls have visibly increased in size.
Preheat the oven to 350 degrees.
Bake rolls for 20-22 minutes, or until light golden brown.
For the Frosting
In a small saucepan over medium heat, melt 1/4 cup butter.
Add the brown sugar and cook for two minutes.
Add the milk and turn the heat up to medium-high. Bring the mixture to a full rolling boil, then remove from the heat. Let cool until you can touch the bottom of the pan. (You can place the pan in another pan of cold water to help it cool faster.)
Stir in the powdered sugar. Add more if you desire a thicker consistency. (Keep in mind that the frosting will thicken as it cools).
Spread on top of rolls.
Notes
The trick to round and "not smushed" cinnamon rolls? Use sewing thread or unflavored dental floss to "slice" them from the roll.