Heat the milk in a small saucepan until it bubbles, then remove from heat. Mix in margarine; stir until melted. Let cool until lukewarm.
In a large mixing bowl, combine 2 1/4 cup flour, yeast, sugar and salt; mix well. Add water, egg and the milk mixture; beat well. Add the remaining flour, 1/2 cup at a time, stirring well after each addition. When the dough has just pulled together, turn it out onto a lightly floured surface and knead until smooth, about 5 minutes.
Cover the dough with a damp cloth and let rest for 10 minutes.
Divide dough into 2" balls. Roll out each ball into a rope/snake shape. Bring the ends together and twist to form the ears. Place on a greased baking sheet.
Break another ball in thirds and use a small piece of that dough to fill the hole that will be under the twist that you made for the ears. You won't even notice that there was a hole after the dough rises and bakes.
Cover and let rise until doubled, about 30 minutes. Preheat oven to 375 degrees F.
Bake in the preheated oven 15-18 minutes, or until browned. Brush hot rolls with melted butter and sprinkle (liberally) with cinnamon/sugar.
Drizzle with icing if desired.