Mix together the first four ingredients as for pastry and set aside.
Set yeast in warm water and sugar, set aside for 10 minutes. Scald milk, cool and add egg. Add yeast to egg and milk and mix. Make a well in the pastry mixture, add the liquid all at once and mix thoroughly. Cover tightly in bowl with waxed paper and damp cloth and refrigerate at least 2 hours, no longer than 48 hrs.
Remove from fridge, flour board well and roll out paste to rectangle. Cut into 1" wide x 12" long strips (I use a pizza cutter). Twist and make into a circular shape. Place on greased or parchment papered cookie sheet and let rise 1 1/2 hours. Bake 12-15 minutes at 400F. Frost and sprinkle with your choice of nuts or coconut. toasted coconut is my personal favorite.
We used a very thin frosting of icing sugar and milk.