01 - Combine warm milk and yeast in a large bowl. Let stand for 5 minutes until foamy.
02 - Add sugar, melted butter, eggs, vanilla, almond extract, salt, and nutmeg to the yeast mixture. Mix until combined.
03 - Gradually add flour, mixing until a soft dough forms. Knead by hand or with a mixer for 5–7 minutes, until smooth and elastic.
04 - Place dough in a greased bowl, cover, and let rise in a warm place for 1–1½ hours, or until doubled in size.
05 - Beat cream cheese, powdered sugar, and vanilla until smooth. In a separate small bowl, mix cinnamon and sugar.
06 - Roll dough into a 10x24-inch rectangle. Spread cream cheese filling down the center third and sprinkle with cinnamon sugar.
07 - Fold one long side over the filling, then the other, pinching seams to seal. Transfer to a parchment-lined baking sheet and shape into a ring, pinching ends together.
08 - Cover and let rise for 45 minutes, until puffy.
09 - Preheat oven to 350°F. Bake for 25–30 minutes, or until golden brown. Cool for 20 minutes.
10 - Whisk powdered sugar, milk, and vanilla until smooth and pourable. Drizzle over cooled cake.
11 - Sprinkle with purple, green, and gold sugars in alternating sections. Once completely cool, insert the plastic baby into the underside if desired.