in a jug, add warm milk, water, salt, 1 teaspoon of sugar and the dried yeast, set aside to ferment for 30 minutes until a foam forms on the surface.
in a large bowl add the remaining sugar, and flour and make a well in the centre. melt butter in the microwave. when yeast is ready add the beaten eggs, butter and vanilla extract to it, then pour it into the dry mixture and use a wooden spoon to mix until it forms a dough. flour your work surface and tip it out and knead it for 5 minutes. put it in a bowl and cover and leave for 45 minutes until it has doubled in size.
while you are waiting for the dough to prove, make the lemon sugar filling by melting butter in the microwave, and adding the sugar and zest to it, stir it until its combined and put to one side.
(keep it somewhere warm so it stays melted)
once the dough has risen, knead it again slightly and roll it out, so its big enough to cut long strips, use a pastry brush and coat each strip with the lemon sugar then fold each strip in half and then cut in in half. add some more mixture and stack it on top of the next piece, place this in a greased loaf tin, so its stood up with the cut parts sticking up.
or several small loaf tins. once the tins are full with the stacked dough (looks like a sliced loaf)
loosely cover and set aside to 45 minutes until its doubled in size again.
while you are waiting make the topping, mix the cream cheese, lemon juice, zest until soft and sift in the icing sugar and mix until smooth, set this to one side for later.
preheat your oven at 170c (325f) and put the loafs in for 25 minutes for small ones or 30-25 minutes for a large one. once done they should be golden brown.
leave to cool a little and drizzle topping on and decorate with grated zest.
this loaf is best eaten warm.