When Charnel chapel, St. Paul’s, was taken down by the Protector Somerset, in 1549, more than 1,000 cart-loads of bones were removed to Finsbury Fields, where they formed a large mound, on which three windmills were erected. It was from these mills that the street obtained its name. (Leigh Hunt.)
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Entry taken from Dictionary of Phrase and Fable, edited by the Rev. E. Cobham Brewer, LL.D. and revised in 1895.