In a large mixing bowl, combine warm milk, granulated sugar, and active dry yeast. Let this mixture sit for about 5 minutes until it becomes frothy and bubbly.

Once the yeast mixture is frothy, add melted unsalted butter, a large egg, and salt into the bowl. Gradually incorporate all-purpose flour, mixing until a soft dough forms.

Transfer the dough onto a floured surface and knead for 5 to 7 minutes, until it becomes smooth and elastic. Place it into a greased bowl, cover it with a damp cloth, and let it rise in a warm place for about 1 hour.

After the dough has risen, roll it out on a lightly floured surface into a rectangle about 1/4 inch thick. Spread softened unsalted butter generously over the surface.

Sprinkle the rolled dough evenly with brown sugar and ground cinnamon.

Starting from one long edge, carefully roll the dough tightly into a log shape. Pinch the seams to seal and slice the log into 12 even pieces. Place the cinnamon rolls upright in a greased baking dish.

Preheat your oven to 350°F (175°C). Bake the caramel cinnamon rolls for approximately 25 minutes, or until they are golden brown.

Once baked, let the rolls cool slightly. Drizzle warm caramel sauce generously over the top.