To make yeast dough, stir 1 teaspoon sugar into a warm milk and sprinkle with yeast.
Let stand 5 minutes or until the surface is frothy.
Stir gently to moisten any dry particles remaining on top.
Sift flour, remaining sugar and salt into a large bowl.
Melt butter; cool slightly.
Lightly beat butter, eggs, lemon peel and juice into yeast mixture.
Pour into flour mixture, combining to make a dough.
Cover and let rise in a warm place 20 minutes.
Grease a 10-1/2-inch (27-cm) tube pan.
To make filling, wash raisins in hot water; dry well on paper towels.
Finely chop raisins.
In a medium bowl, combine chopped raisins, poppy seed filling, salt and cinnamon.
Preheat oven to 400°F (205 °C).
On a floured surface, roll out risen dough to a 20x10-inch (50x25-cm) rectangle.
Sprinkle poppy seed mixture over top.
Roll up dough from the longest edge, making sure the ends are as thick as the center.
Brush edges and ends with egg yolk and press to seal.
Place roll in greased tube pan with seam on top.
Press ends together firmly so filling does not escape.
Bake 15 minutes.
Reduce oven temperature to 375°F (190°C).
Bake 45 minutes or until golden brown.
Remove cake from pan; cool on a rack.
To make frosting, combine powdered sugar, lemon juice and water in a small bowl.
Spoon frosting over cooled cake.
Decorate with halved candied cherries while frosting is soft.