Activate yeast. Combine warm water, yeast and 1 tsp. of sugar in small bowl. Stir and let sit for 10 minutes. Yeast should be bubbly and have doubled in size.
In a large bowl, stir together sugar, milk, melted shortening, salt and the egg yolk. Stir in yeast mixture. Add 1 cup of sifted bread flour at a time until 3 cups are added. Stir until a sticky dough starts to form.
Sprinkle the remaining ⅓ cup bread flour on a hard work surface, turn the dough out onto the surface and knead for 10-12 minutes. Dough will be sticky and elastic. Transfer dough into a lightly greased bowl, cover and let rise for 1 hour.
Punch dough down. Roll into a log and cut into 12 equal size pieces, approximately the size of golf balls (2 oz. each). Place dough balls in a lightly greased 9 X 13 pan and brush with 1 tbsp. of melted butter. Cover and let rise for 30 minutes.
Make wells in the center by pressing a lightly floured ¼ c. measuring cup into the center of each dough ball. Fill each dough ball with 1 Tbsp. of cream cheese filling. Brush sides with more melted butter. Sprinkle 1-2 tsp. of popyska (streusel topping) over each kolache. Cover and let rise for 1 – 2 hours.
Bake kolaches at 350℉ for 28-33 minutes or until golden brown. Remove from oven and allow to cool for about 1 hour before cutting into them.
In a high speed mixer, whisk together cream cheese, sugar, egg yolk and vanilla extract for 1-2 minutes or until creamy.
In a medium bowl, combine flour, sugar, salt, cinnamon. Cut butter into dry mixture until coase crumbles form.
