In large mixing bowl, mix together scalded milk, water, butter, sugar, salt and egg. Add one cup of flour and yeast and mix together until smooth. Add in remaining flour until dough is easy to handle.
Knead dough on lightly floured surface for 5-8 minutes. Place in greased bowl. Cover and let rise until doubled, about 1 1/2 hours.
When doubled, punch down dough. Roll out on floured surface into a 15" x 9" rectangle. Spread 1/3 cup melted butter over dough. Sprinkle buttered dough with 1 cup brown sugar and cinnamon. Top that with raisins and nuts. Roll up dough, beginning with long side, and pinch edge together to seal. Cut into 12 slices.
Coat the bottom of a 9" x 12" baking pan with remaining melted butter and brown sugar. Place cinnamon rolls close together in pan. Cover and allow to rise until double, about 30-40 minutes. Bake in preheated 350 degree oven for 30 minutes or until golden brown.
To make icing: In small bowl, mix together cream cheese, butter, powdered sugar, and vanilla. Add hot water 1 tablespoon at a time until the icing reaches desired consistency. Spread over warm rolls. Makes 12 rolls.
Notes
*Unless otherwise indicated, all butter used on this recipe site is salted.