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In a small bowl combine yeast, ¼ tsp sugar and warm milk. Set aside for 5 minutes.
In a stand mixer cream together the butter and 3 Tbsp of sugar until light and fluffy, about 3 minutes.
Add the yeast mixture, egg, salt and flour and mix on low until combined.
Increase speed and mix/knead for about 7 minutes, until the dough is smooth and has pulled away from the sides of the bowl.
Press the dough into an ungreased 9x13'' baking dish. Cover with a towel or plastic wrap and let rise in a warm place until doubled, about 2 hours.
Whisk together light corn syrup, water and vanilla until combined.
In a separate bowl cream together the butter, sugar and salt until light and fluffy, about 5 minutes.
Add egg, scraping down the sides of the bowl. Add a little of the flour, alternating with adding the corn syrup mixture, until both are combined.
Preheat oven to 350 degrees F.
Drop large spoonfuls of topping all over the risen dough. Use a spatula to gently smooth it into an even layer.
Bake for 35-40 minutes or until the top has set and is golden brown. The center should still seem soft when it comes out of the oven. Allow to cool on a wire cooling rack to room temperature.
Serve sprinkled with powdered sugar. This cake is best enjoyed the day it is made.