In medium bowl mix milk, warm water, & the 1/2 teaspoon of sugar.
Sprinkle the yeast on top and lets stand for about 10 minutes to foam.
Add egg into the yeast mixture and stir just a couple of times.
In food processor place your cold butter and pulse for a couple of times.
Add the dry ingredients and pulse until the butter is in small chunks mixed into the flour mixture.
Pour the dry ingredients into a large bowl (if using a large food processor you can simply add to the food processor itself and pulse just until mixed.) and with a spatula or wooden spoon stir in the yeast mixture. Do NOT over mix (there will still be bits of butter in the batter)
Cover with plastic wrap and place in the fridge for at least 3 hours or overnight (you can put it in the freezer for 20 minutes at the beginning and then in the fridge for 1 hour to speed this up)
Roll out your dough and fill your pastries.
For Cream Cheese Filling: mix well the cream cheese, sugar, and lemon together.
Place on greased pan, cover with plastic wrap and let rise for 1 1/2 hours (see tip in post for a faster option).
Bake at 350 degrees for about 25 minutes or until golden brown.
Cool and serve.