Italian Coffee Cake (Panettone)

This is a festive sweet bread which was originally from Milan.

2 packages active dry yeast
1 cup warm water (105 to 115 degrees F)
1/2 cup granulated sugar
1/2 cup butter or margarine, softened
3 eggs
1 teaspoon salt
1 teaspoon grated lemon peel
1 teaspoon vanilla extract
5 to 5 1/2 cups all-purpose flour
1/2 cup golden raisins
1/2 cup chopped citron
2 tablespoons pine nuts or walnuts (optional)
Butter or margarine, softened

Dissolve yeast in warm water in large bowl. Stir in sugar, 1/2 cup butter, the eggs, salt, lemon peel, vanilla extract and 2 1/2 cups of the flour. Beat until smooth. Stir in raisins, citron, pine nuts and enough remaining flour to make dough easy to handle. Turn dough onto lightly floured surface; knead until smooth and elastic, about 5 minutes. Place in greased bowl; turn greased side up. Cover; let rise in warm place until double, 1 1/2 to 2 hours. Dough is ready if indentation remains when touched.

Punch dough down; divide into halves. Shape each half into 7-inch diameter round loaf. Place loaves in 2 ungreased 8-inch round layer pans. Cut a cross 1/2 inch deep on top of each loaf. Generously grease one side of a strip of heavy brown paper, about 25 x 4 inches. Fit around inside of pan, forming a collar; fasten with paper clip. Repeat with second loaf. Cover; let rise until double, about 1 hour.

Preheat oven to 350 degrees F. Bake loaves until golden brown, 35 to 45 minutes. Remove paper. Brush tops with butter. Cool on rack.

Makes 2 loaves.