In a mixing bowl, combine the flour, granulated sugar, instant yeast, and salt.
In a small saucepan, heat the milk, butter, and water over low heat until the butter has melted. Remove from heat and let it cool for a few minutes.
Add the warm milk mixture, vanilla extract, and eggs to the dry ingredients. Mix until a soft dough forms.
Transfer the dough to a lightly floured surface and knead for about 5-7 minutes until smooth and elastic.
Place the dough in a greased bowl, cover with a clean kitchen towel, and let it rise in a warm place for about 1-2 hours or until doubled in size.
Punch down the dough and roll it out on a floured surface into a rectangle of about 12x16 inches.
In a small bowl, mix together the softened butter, granulated sugar, lemon zest, and ground cinnamon for the filling.
Spread the filling mixture evenly over the rolled-out dough.
Starting from the long side, tightly roll the dough into a log.
Cut the log into 12 equal-sized rolls.
Place the rolls in a greased baking dish, cover with a clean kitchen towel, and allow them to rise for another 30-45 minutes.
Preheat the oven to 375°F (190°C).
Bake the cinnamon rolls for approximately 20-25 minutes, or until they turn golden brown.