PLACE milk, egg, flour, sugar, salt, cocoa, yeast and butter in bread machine pan. Set machine on Dough cycle; press Start.
GREASE 13 x 9-inch baking pan. Remove dough from pan when cycle is finished. On lightly floured surface, knead for 1 minute. Roll to 15 x 10-inch rectangle. Spread peanut butter over dough to within 1/2 inch of edges. Sprinkle 1 cup morsels over peanut butter. Roll dough up tightly, starting at long end. Press edge to seal. Cut into 12 slices using a sharp knife. Place rolls in prepared pan. Cover; allow to rise in warm place for about 1 hour or until doubled in size.
PREHEAT oven to 375° F.
BAKE rolls for 20 to 25 minutes. Cool in pan on wire rack for 20 minutes. Drizzle Milk Chocolate Icing over rolls.
FOR MILK CHOCOLATE ICING: Place 2 tablespoons milk and 1 tablespoon light corn syrup in microwave-safe bowl. Microwave, uncovered, on HIGH (100%) power for 1 minute. Add 1 1/4 cups (8 oz.) NESTLÉ TOLL HOUSE Milk Chocolate Morsels; stir until melted. Let stand for 2 minutes. Stir until smooth. Cool slightly.