Add warm milk through yeast to the pan of a bread machine, according to manufacturer's "dough setting" instruction and turn on.
When the cycle is completed, place the dough on a lightly oiled surface. Knead the dough several times and form it into an oval; cover with a towel and let rest for 10 minutes.
Roll and stretch the dough into a rectangle approximately 9 x 18 inches.
Grease a 9 x 13 x 2-inch baking pan.
Brush the melted butter on the dough.
In a small bowl, combine the granulated sugar, brown sugar, cinnamon and raisins; sprinkle over the prepared dough.
Starting with long edge, roll up dough, pinching the seams to seal. With a knife, lightly mark roll into 1½-inch section. Cut the rolls carefully using a very sharp or serrated knife (trying not to press down too hard).
Place the rolls cut-side up in the prepared pan, flattening them slightly.
Preheat oven to 350 degrees.
Bake 25 to 30 minutes or until golden brown.
Remove from oven and cool on a wire rack for 10 minutes.
Mix powdered sugar, vanilla extract and hot water to make the frosting and spread over the cinnamon rolls while still warm.