Combine 1/4 cup of the water, 1 tablespoon of the granulated sugar and yeast. Stir to dissolve yeast and let stand unitl bubbly, about 5 minutes. Stir in egg.
Fit processor with steel blade. Measure almonds, candied fruit and raisins into work bowl. Process on/off 3 or 4 times until mixture is coarsely chopped. Remove from work bowl and reserve.
Place remaining granulated sugar and lemon rind in work bowl. Process until rind is minced, 1 to 2 minutes.
Add flour, butter and salt to sugar mixture. Process until mixed, about 5 minutes.
Turn on processor and gradually drizzle yeast mixture through feed tube into flour mixture. Drizzle just enough of the remaining water into flour mixture so dough forms a ball that cleans the sides of the bowl. Process until dough turns around the bowl about 25 times. Turn off processor and let dough stand 1 to 2 minutes.
Turn on processor and very slowly drizzle in enough remaining water to make dough soft, smooth and satiny but not sticky. Process until dough turns around bowl about 15 times.
Sprinkle nut-fruit mixture evenly over dough. Process on/off just until mixed.
Turn dough onto large greased cookie sheet. Shape into a ball. Cover with inverted bowl or plastic wrap and let stand 20 - 30 minutes. Roll out to an 8-inch circle. Cover loosely with plastic wrap and let stand in warm place until doubled, about 45 minutes.
Heat oven to 375 F. Uncover loaf and bake until evenly brown, 25 - 30 minutes.
Remove bread from cookie sheet and place on wire rack. Blend powdered sugar, vanilla and enough milk to make a smooth mixture thick enough to spread. Spread over bread.
Food Processor Bread Book From the collection of Jim Vorheis
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