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1
In a small bowl, dissolve yeast in 1/4 cup of lukewarm water. Set aside.
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2
In a medium mixing bowl, add remaining water and 1 cup flour. Using an electric mixer, mix in yeast until well blended and smooth. Cover bowl with plastic wrap and a towel and place in a warm place to rise, 1 to 2 hours. This mixture should double in bulk.
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3
In an electric mixer, cream butter. Gradually add sugar and beat until light. Add lemon juice and rind and salt. Add egg.
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4
Add raised yeast mixture and mix well.
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5
With a wooden spoon, stir in about 1 to 1 & 1/2 cups of flour. Turn dough out onto a floured surface and knead to form a soft non-sticky dough. Shape into a ball. Place dough in a greased bowl. Cover with plastic wrap and a towel and let rise in a warm place until doubled in bulk, about 2 hours.
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6
Punch down the dough with your fist. Divide the dough into 2 equal pieces. Roll each piece of dough into a long cylinder about 1 & 1/2 inches thick.
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7
Loosely twist two pieces of dough together to form a loose braid. Form the braid into a ring shape and place on a parchment-lined cookie sheet. Place uncooked eggs into spaces in braid. Cover with plastic wrap and towel and let rise until doubled in a warm spot, about 40 minutes. Remove plastic wrap and towel.
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8
Preheat oven to 375 degrees.
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9
Bake for 25 to 30 minutes, or until golden brown.
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10
Remove from the oven. Cool bread in a pan on wire rack. Serve warm or cold. When cool, if desired, frost top of loaf with confectioners' frosting.