1. For the gugelhupf: Combine the yeast and warm water in a small bowl. Stir briefly and set aside in a warm place until frothy, about 10 minutes.
2. In the meantime, warm the milk with the butter and sugar in a saucepan set over a medium heat. Stir well until the butter has melted, the sugar has dissolved, and the milk reaches ~40°C | 104F on a thermometer.
3. Combine the flour and salt in a large mixing bowl, making a well in the middle. Add the yeast water and then start to mix as you pour in the warmed milk mixture. Continue to mix, adding the beaten egg and apple sauce in three additions.
4. Continue to mix until the dough is soft and sticky. Add the lemon zest and grated apple, mixing well to incorporate.
5. Turn out the dough onto a lightly floured surface and knead well until smooth and elastic, about 5 minutes.
6. Grease a large gugelhupf mould with some vegetable oil. Shape the dough into the mould.
7. Cover with an oiled piece of clingfilm and leave to rise in a warm place for 2 hours.
8. After rising, preheat the oven to 190°C (170° fan) | 375F | gas 5.
9. Bake for the gugelhupf for 35-45 minutes until golden-brown and risen; a cake tester should come out clean from the centre. Remove to a wire rack to cool.
10. To serve: When ready to serve, turn out onto a serving plate or stand.
11. Pulse together the pink sugar crystals and icing sugar in a food processor until powdery. Spoon over the top of the gugelhupf before serving.
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3 hours 30 minutes