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Step 1
You will need a large angel (chiffon) cake tin with a removable base. Carefully line the side, base and funnel with baking paper.
Step 2
Gently warm ¼ cup of the milk. Sprinkle with the yeast and 1 teaspoon of the sugar. Allow to stand for 5 minutes to allow it to froth. Add 3 teaspoons of the flour and stir. Allow to stand for 15 - 20 minutes or until frothy and thick.
Step 3
Mix the remaining flour and sugar together with the salt in the bowl of an electric mixer. Warm the remaining milk and melt the butter. Beat the eggs with the vanilla. Add these and the yeast mixture to the flour mixture and knead with the dough hook for 10 minutes. You may need to add extra flour but do so a spoon at time, kneading after each addition. You will have a very sticky dough that just comes away from the side of the bowl.
Step 4
Put the dough into an oiled bowl, cover with plastic wrap and a tea towel. Put the bowl in a warm place and allow it to rise until doubled in size. This will take at least 2 hours.
Step 5
Once the dough has risen, make the filling. Place the filling ingredients in a large heatproof bowl over a saucepan of simmering water (or use a double boiler) and melt, stirring until smooth.
Step 6
Cut the dough in half. Roll out to a large rectangle (30 x 45 cm) and carefully spread half the filling mixture on the surface from edge to edge. Roll up the dough to make a large snake and place it into your prepared tin, curling around the funnel, seam side up. Repeat with the other half of the dough. Place it on top of the first roll, seam side down.
Step 7
Cover with plastic wrap and a tea towel and allow to rise in a warm place until at least doubled in size, about 1 hour. It will rise almost to the edge of the tin. Brush gently with the egg wash and sprinkle with the extra sugar.
Step 8
Preheat the oven to 170°C.
Step 9
Bake the kugelhopf for 40 minutes, or until well risen and golden brown on top. If not eating immediately, allow to cool out of the tin but with the baking paper still attached.Best eaten on the day of baking or reheated the next day. Freezes well for up to 3 months.