Pour milk into a saucepan. Heat to scalding. Turn off heat; stir in 1/2 cup of the granulated sugar and the salt. Let mixture cool to lukewarm. In a large bowl, dissolve yeast in the 1/2 cup warm water; let mixture rest for 5 minutes. Pour lukewarm milk mixture into yeast solution. Stir in 1 cup of the flour. Beat dough with electric mixer or egg beater until smooth. Cover bowl with cloth towel; let dough rise in a warm place 1 hour and 30 minutes or until double in bulk.
Punch down dough in bowl; fold in citron, cherries, almonds, lemon rind and raisins. Add eggs, 3/4 cup (1 1/2 sticks) of the softened butter and the nutmeg. Stir in 3 more cups flour; mix dough until smooth. Turn dough out onto a lightly floured surface. Knead, working in enough of remaining flour to make dough smooth and elastic. Divide dough into halves; roll each portion into an oval, about 1/2" thick.
In a small saucepan, melt remaining butter; brush it over ovals. In a small bowl, combine cinnamon with remaining 2 Tbsp granulated sugar; sprinkle mixture over ovals. Fold ovals in half, lengthwise. Place them on buttered baking sheet. Twist ends of each oval toward each other to form a crescent. Loosely cover ovals with wax paper and a cloth towel. Let Stollen rise in a warm place about 1 hour or until double in bulk.
Preheat oven to 350 degrees. Bake Stollen 45 minutes or until golden. In a small bowl, combine confectioners' sugar with enough of the hot water to make a thick icing. Dribble icing over hot Stollen; let Stollen cool before slicing. Makes 1 Stollen.