In a small bowl, combine the warm water and active dry yeast. Let it sit for about 5–10 minutes until bubbly and frothy.

In a large mixing bowl, warm the milk slightly and mix in the softened butter, sugar, and salt. Let it cool until it’s just warm, then stir in the yeast mixture.

Add the eggs to the milk mixture, then mix in cinnamon and gradually incorporate the flour. Knead by hand or with a mixer for about 5–7 minutes until the dough is smooth and elastic.

Place the dough in a greased bowl, cover it with a cloth, and let it rise in a warm spot for about 1 hour, or until doubled in size.

In another bowl, combine softened cream cheese, powdered sugar, and vanilla extract. Mix until smooth. Set aside.

Once the dough has risen, punch it down and roll it out into a large rectangle on a floured surface. Spread the cream cheese filling evenly on top.

Roll the dough tightly from one long side to the other, forming a log. Carefully shape it into a circle and pinch the ends together to form a ring.

Place the ring on a greased baking sheet, cover it, and let it rise for another 30 minutes.

Preheat the oven to 350°F (175°C). Bake the cake for about 25-30 minutes until golden brown.

Once the cake has cooled slightly, drizzle with icing and sprinkle with colored sugars in a festive pattern.