Preheat oven at Step to 365°F at step 9.
Cover two rimmed baking sheets with parchment paper, lightly spray with baking spray. Set aside.
Prepare the dough: Place flour in a large bowl. In the middle of the bowl, create a well. Whisk the 2 eggs and pour into the center of the flour.
In a small saucepan, add butter, 1/2 cup sugar and milk, heat until very warm but not hot (no warmer than 100 degrees). Pour milk mixture into the beaten egg. Sprinkle yeast over milk mixture, sprinkle 1 tablespoon sugar over yeast, whisk together and allow to activate.
Slowly, mix in the flour into the milk mixture. Continue mixing until flour it is fully incorporated and isn't sticking to sides of the bowl. (Dough can be mixed by hand or with a dough hook in a mixer.)
Cover bowl with plastic wrap then a towel and allow to rise at room temp for 1 1/2 hours.
Meanwhile, beat cream cheese and 1/3 cup sugar; set aside.
Lightly dust surface with flour. Transfer dough onto surface and divide into four parts.
Gently roll out the dough into a rectangle about 8/9” x 12/13” in size. In the middle of the dough add poppy seed filling and on either side spread cream cheese. Fold over one side of the roll, then fold the other side atop the first. Pinch edges together to close seams so nothing oozes out.Repeat with remaining rolls.
Whisk egg and water for egg wash and brush tops of rolls. Sprinkle poppy seed atop rolls. Set aside to rise 30 minutes.
Bake 25-30 minutes until rolls are golden in color.
Once baked, transfer to cooling rack. Once cooled, dust with powdered sugar. Enjoy!