Warm the milk to 110°F (43°C). Stir in 1 tablespoon of sugar and the yeast, then let sit for 8-10 minutes until foamy.
In your stand mixer bowl, combine the bread flour, remaining sugar, salt, orange zest, and orange extract. Add the yeast mixture, softened butter, and eggs. Mix on low until a shaggy dough forms, then knead on medium for 8-10 minutes until smooth and elastic.
Shape the dough into a ball and place in a greased bowl. Cover and let rise in a warm place for 1.5-2 hours until doubled in size.
Mix the all-purpose flour, powdered sugar, butter, and egg yolk until smooth. Wrap and refrigerate until ready to use.
Punch down the dough, roll into a 24-28 inch rope, and shape into an oval or ring on the baking sheet. Press the baby figurines into the underside of the dough.
Cover loosely and let rise for 30-45 minutes until puffy. Brush with egg wash, roll the sugar paste into thin ropes and arrange in a crisscross pattern on top. Press candied cherries, guava paste strips, and almonds into the gaps.
Preheat oven to 350°F (175°C). Bake for 25-30 minutes, tenting with foil if the top browns too quickly, until internal temperature reaches 190°F (88°C). Cool completely on a wire rack before slicing.