For the Dipping Sauce, mix yogurt, cucumber, mint and rose water in medium bowl. Cover. Refrigerate until ready to serve.
For the Lamb Kaftas, mix lamb, onion, poppy seed, cumin, salt, black pepper, cinnamon and red pepper in large bowl. Add egg; mix well. Form 2 heaping tablespoons of the lamb mixture into a 3-inch long roll. Repeat with remaining lamb mixture to make about 12 kaftas.
Heat 2 tablespoons of the oil in large skillet on medium heat. Add 1/2 of the kaftas; cook 7 minutes or until cooked through and browned on all sides. Drain on paper towels. Repeat with remaining kaftas, adding remaining 1 tablespoon oil as needed.
To serve kaftas, carefully slide a wooden skewer lengthwise through center of each kafta. Serve with Dipping Sauce.