In the bowl of a stand mixer, combine the warm milk, yeast, and 1/4 cup sugar. Allow to sit for 5 minutes or until foamy.
Add the flour, egg, and salt. Mix until combined, then continue to knead for 5-7 minutes or until the dough is smooth and elastic.
Allow the dough to rise for an hour or until almost doubled in size.
In a small saucepan, cook the blueberries, lemon zest, and remaining 1/4 cup sugar over medium heat. Bring to a simmer and cook for about 5 minutes or until the mixture has come to a jam-like consistency. Set aside to cool.
Once the dough has risen, dump it onto a lightly floured surface and roll into a rectangle.
Spread with the blueberry mixture, leaving a 1/2 inch border around the edges.
Starting from the long side, roll up tightly but carefully to ensure that the filling stays in place.
Cut evenly into 12 rolls, then place into a greased 9x13-inch baking dish.
Cover lightly and allow to rise for 30 minutes.
Preheat the oven to 350 degrees. Bake the rolls for 25-30 minutes or until golden brown.
In a small bowl, beat together the cream cheese, lemon juice, and powdered sugar. Spread over the warm rolls and serve.