In a large bowl combine water and yeast. Let it sit until dissolve for about 3-5 minutes.
In another microwave bowl add sugar, whole milk, salt and powdered milk with sugar, salt, vanilla extract, and butter. Microwave for about 1-1 1/12 minutes. Stir until butter has completely dissolved.
Pour into the yeast mixture, add eggs and thoroughly mix.
Gently add flour, a cup at a time. Mix well using hands or stand mixer; the dough is going to be sticky. If too sticky add the remaining flour a little at a time. Less flour is preferable.
Knead the dough for about 1 minute or two.
Cover loosely with a clean cloth and let rise in a warm, draft-free place for 1 1/2 to 2 hours or until doubled.
Make cinnamon sugar by combining sugar, cinnamon, and nutmeg. Set aside until ready to use.
Punch dough down.
Lightly flour board surface, roll out to 1 -inch thick rectangle. Generously brush with melted butter. Leaving a 1-inch border on the cinnamon dough, sprinkle with cinnamon-sugar mixture. And pat cinnamon mixture gently into the surface.
Starting with the end nearest you, roll the dough up snugly like a jelly-roll around the filling, finishing the roll with the seam side down. Do not forget to pinch the seal so they don’t come apart when making the dough.
Slice the roll into 4 equal pieces, then slice each piece into 3 equal pieces- a total of 12 pieces.
Oil the bottom of baking pan with butter or use a cooking spray. Place cinnamon roll slices close together in the pan and let rise until dough is doubled, about 45 minutes. Bake at 350 Degrees F for about 25 -30 minutes or until golden browned. Remove and let it cool for about 5 minutes.