Preheat oven to 400 degrees.

Dissolve yeast and 1 teaspoon sugar in lukewarm water. Set aside.

In a large mixing bowl, combine remaining sugar, salt, ¼ cup butter (in chunks), and scalded milk. Mix with electric mixer on low speed until well-blended. Cool to lukewarm. Beat in 2 eggs. Add yeast mixture, vanilla extract, cinnamon and 3 cups flour. Mix until smooth. Stir in remaining flour (1 cup) by hand. Add up to a half-cup more if sticky. Cover with a damp towel and allow to rise in a warm place until doubled in size, about 1 ½ hours.

On a lightly floured surface, roll dough into a square ⅓-inch thick. Dot with half the remaining butter and fold in half. Repeat. Roll again into a rectangle ⅓-inch thick and repeat folding process. Place in greased bowl, cover with towel and let stand 25 minutes. Refrigerate for 2 hours.

Remove from refrigerator and roll onto lightly floured surface into a rectangle ⅓-inch thick. Cut rectangle into 12 1-inch strips.

Braid strips in sets of 3; pinch together 2 braids to form an oval, then the other 2 braids to form another oval, making 2 cakes.

Place ovals on heavy baking sheets lined with parchment paper. Cover with a towel and allow to rise until slightly less than doubled in bulk, about 45 minutes.

Beat remaining egg and brush on cakes. Bake 20-25 minutes, or until golden; let cool.

While cake is baking, make topping: Color each ¼ cup sugar with a couple of drops of food coloring and set aside. Combine powdered sugar, vanilla and enough water to form a paste. Spread icing on cake tops using a butter knife. Before the icing dries, sprinkle three colors of sugar in bands alternately around cake tops.