Instructions: Dissolve yeast & 1 tsp. sugar in water. Let st& until foamy, 5-10 minutes.

Place half of hazelnuts in food processor. Whirl until chopped; remove & reserve. Place remaining nuts in processor along with remaining sugar.

Whirl until finely ground. Add the flour, salt & butter to processor. With machine running, add egg & the yeast mix. Whirl until mix forms a ball; whirl 30 seconds more to knead. Transfer dough to a large greased bowl; turn to coat. Cover with a damp cloth. Let rise in warm place, away from drafts, until doubled in bulk, about 1 1/2 hours. Punch dough down. On lightly floured surface, knead in remaining nuts & the cherries or raisins.

Divide the dough in half. Roll each half into a 24" long rope. Twist the ropes together. On a greased sheet, form the braided loaf into a c&y cane shape. Cover with a damp cloth. Let rise in a warm place, away from drafts, until doubled in bulk, about 1 hour. Preheat oven to 350. Bake for 25-30 minutes or until golden brown & hollow sounding when tapped. Cool bread on wire rack. Prepare icing. Divide icing in half. Tint half with red food coloring. Drizzle or pipe red & white icings in c&y cane stripes over bread. Icing: Stir together 1 1/2 cups confectioners sugar & about 2-3 Tbls. milk until blended & good icing consistency.

**NOTE: To toast hazelnuts, spread nuts on baking sheet. Bake in preheated 350 oven for 8-10 minutes or until toasted. Rub nuts in a clean kitchen towel to remove the skins.

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