In small bowl, combine water, yeast, and sugar.
Stir until dissolved and set aside.
In large bowl, mix pudding according to package instructions with milk.
Add ½ cup melted butter, egg, and salt. Mix well, then add yeast mixture and blend well.
Gradually add flour and knead until smooth.
Place in a very large greased bowl.
Cover and let rise in a warm place until double in size.
Punch down and let rise again for second time.
Roll dough on a very large floured surface.
Dough should roll out to a long rectangle, about 34 x 21 inches in size.
Take the 1 cup of melted butter and use a pastry brush to spread over entire dough surface.
In small bowl, mix together the brown sugar and cinnamon.
Sprinkle over top of buttered dough. Roll dough up like a jelly roll.
Measure dough every 2 inches and cut with a knife.
Take each roll into the palm of your hand and gently pack the roll (this keeps it from coming apart during baking).
Place each roll in a buttered baking pan and allow to rise in a warm place for about 20 minutes.
Bake in a preheated 350 degree oven until golden brown in color, about 15-20 minutes.
Frost rolls while still warm.
In mixing bowl, combine all ingredients and mix until smooth.
Spread on the very warm rolls.