In a mixing bowl, beat the cream cheese, 1/4 cup granulated sugar, vanilla extract, and 1/2 tsp ground cinnamon until smooth and creamy. Set aside.

Unroll the crescent dough and pinch seams together to form solid rectangles.

Cut dough into equal squares.

Combine warm milk, yeast, and 2 tbsp granulated sugar in a bowl. Let sit for 5 to 10 minutes until foamy.

Add 2 1/2 cups all-purpose flour, 1/2 tsp salt, 1 large egg, and 3 tbsp softened unsalted butter. Mix until a soft dough forms.

Knead for 5 to 7 minutes until smooth and elastic, then place in a greased bowl, cover, and let rise for 1 hour or until doubled.

Roll dough into a rectangle and cut into squares.

Add 1 to 2 teaspoons of cream cheese filling to the center of each square.

Fold over and pinch edges tightly to seal so no filling escapes during baking.

Preheat oven to 375°F (190°C) or air fryer to 350°F (175°C).

Arrange rolls on a parchment-lined baking sheet and bake for 12 to 15 minutes until golden and puffed.

Alternatively, cook in the air fryer for 6 to 8 minutes until golden brown.

Brush warm rolls generously with melted butter, then toss or brush with the cinnamon-sugar mixture until well coated.