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1.Cream the butter and 1/2 cup sugar until smooth.
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2. In a separate bowl, beat the egg yolks until they are creamy. Mix the yeast in warm water with 1/2 teaspoon of sugar. When this thickens, add it to the egg yolks with the vanilla and salt.
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3. Combine the milk with the egg yolks and the creamed butter and sugar. Begin adding the flour until a soft dough is formed. Stir in the nuts until they are evenly distributed. Knead the dough until it is no longer sticky.
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4. Cover the dough and allow it to rise in a warm place until it doubles. The dough may rise for 5 hours if you wish, or as few as two hours.
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5. Butter a 3-quart pan and shape the dough into it. Allow the dough to rise again for about 2 hours.
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6. Preheat your oven to 350oF oven for 45 before baking.
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7.For the filling, cream the cinnamon, sugar and butter, then mix in the egg, milk, and the flour and walnuts. Using your fingers, mix together until crumbly. Set aside.
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8. On a lightly floured surface, roll the dough into a 12 x 8-inch rectangle
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9. Using a metal spatula spread the filling over dough within 1/2 inch of edges. Beginning with long side, roll dough up tightly and fold in ends.
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10. Bake in a parchment paper lined pan for 30 minutes. Allow babka to cool for 30 minutes before cutting. Slice babka and serve.