Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a small saucepan, combine the dried figs and water. Bring to a simmer over medium heat and cook until the figs are soft, about 5-7 minutes. Remove from heat, then let them cool slightly before transferring to a food processor.
Add vanilla extract to the figs in the food processor and blend until smooth to create a fig paste. Set aside.
In a mixing bowl, whisk together flour, baking powder, baking soda, salt, and cinnamon (if using).
In another bowl, cream together the softened butter and brown sugar until light and fluffy. Add the egg and mix until fully combined.
Gradually add the dry ingredients to the wet mixture, mixing just until combined to form a dough. Do not overmix.
On a lightly floured surface, roll out the dough into a rectangle approximately ⅛ inch thick.
Spread the fig paste evenly over the rolled-out dough, leaving a 1-inch border around the edges.
Fold the dough over the fig paste lengthwise, pinching the edges to seal. Cut the log into individual cookies, about 1 inch wide.
Place the cookies on the prepared baking sheet, spacing them an inch apart.
Bake in the preheated oven for 12-15 minutes or until lightly golden on the edges.
Allow the Fig Newtons to cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.