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1
In a medium skillet, cook the bacon over moderate heat, stirring, until lightly browned, about 7 minutes.
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2
Using a slotted spoon, transfer the bacon to paper towels.
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3
Add the onion to the skillet and cook, stirring, until softened but not browned, about 5 minutes; using a slotted spoon, transfer to paper towels.
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4
In a standing mixer fitted with a paddle, combine the milk, sugar and yeast and let stand for 5 minutes.
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5
Add the egg and salt and beat at medium speed until blended.
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6
Gradually add the flour and continue beating until the dough is elastic, about 4 minutes.
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7
Gradually add the 11 tablespoons of softened butter, beating until the dough comes cleanly off the side of the bowl, about 8 minutes.
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8
At low speed, beat in the bacon, onion and walnuts until evenly distributed throughout the dough.
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9
Cover the bowl with plastic wrap and let the dough rise at warm room temperature until doubled in bulk, 2 to 3 hours.
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10
Generously butter a 9-inch kugelhopf mold or fluted tube pan and set the almonds in the indentations in the bottom.
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11
Punch down the dough, shape it into a ball and make a hole in the middle.
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12
Set the ring of dough in the mold, cover and let rise until the dough almost reaches the top of the mold, about 1 hour.
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13
Preheat the oven to 375.
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14
Bake the kugelhopf for about 40 minutes, or until golden brown.
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15
Transfer to a rack and let stand for 10 minutes, then unmold.
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16
Brush with the melted butter while still warm and serve at room temperature.
