Pour the warm water into a small shallow bowl, and sprinkle yeast and 2 teaspoons sugar into it. Allow the yeast and sugar to rest for three minutes then mix thoroughly. Set bowl in a warm place for ten minutes, or until yeast bubbles up and mixture almost doubles in volume. Combine 3 1/2 cups of flour, remaining sugar, nutmeg and salt, and sift into a large mixing bowl. Stir in lemon zest. Separate center of mixture to form a hole and pour in yeast mixture and milk. Add egg yolks and, using a wooden spoon, slowly combine dry ingredients into the yeast/milk mixture. When mixture is smooth, beat in 8 tablespoons butter (1 tablespoon at a time) and continue to beat 2 minutes, or until dough can be formed into a medium-soft ball.

Place ball of dough on a lightly floured surface and knead like bread. While kneading, sprinkle up to 1 cup more of flour (1 tablespoon at a time) over the dough. When dough is no longer sticky, knead 10 minutes more until shiny and elastic.

Using a pastry brush, coat the inside of a large bowl evenly with one tablespoon softened butter. Place dough ball in the bowl and rotate until the entire surface is buttered. Cover bowl with a moderately thick kitchen towel and place in a draft-free spot for about 1 1/2 hours, or until the dough doubles in volume. Using a pastry brush, coat a large baking sheet with one tablespoon of butter and set aside.

Remove dough from bowl and place on lightly floured surface. Using your fist, punch dough down forcefully. Sprinkle cinnamon over the top, pat and shake dough into a cylinder. Twist dough to form a curled cylinder and loop cylinder onto the buttered baking sheet. Pinch the ends together to complete the circle. Cover dough with towel and set it in draft-free spot for 45 minutes, or until the circle of dough doubles in volume. Pre-heat oven to 375 degrees.

Brush top and sides of cake with egg wash and bake on middle rack of oven for 25 to 35 minutes until golden brown. Place cake on wire rack to cool. If desired, you can hide the plastic baby in the cake at this time.

Colored sugars

Squeeze a dot of green paste in palm of hand. Sprinkle 2 tablespoons sugar over the paste and rub together quickly. Place this mixture on wax paper and wash hands to remove color. Repeat process for other 2 colors. Place aside.

Icing

Combine sugar, lemon juice and 3 tablespoons water until smooth. If icing is too stiff, add more water until spreadable. Spread icing over top of cake. Immediately sprinkle the colored sugars in individual rows consisting of about 2 rows of green, p urple and yellow.