To begin, warm the milk until just lukewarm. In a small bowl, mix the yeast with a teaspoon of sugar and a few tablespoons of milk. Leave for 5 to 10 minutes until it becomes frothy, indicating the yeast is active. Move to the next step once ready.
Take a large bowl and combine the flour, remaining sugar, and salt. Add the eggs, melted butter, vanilla extract, and activated yeast mixture. Begin mixing until a soft dough forms, then proceed to kneading.
Turn the dough onto a lightly floured surface and knead for about 8 to 10 minutes until smooth and elastic. The dough should feel soft but not sticky. Place it back in the bowl, cover with a cloth, and allow it to rise.
Let the dough rest in a warm place for around 1 hour or until doubled in size. This slow rise develops flavour and gives the cake its signature light interior. Once risen, gently knock back the dough and move forward.
Roll the dough out to roughly 1 cm thickness. Cut into long strips about 1.5 to 2 cm wide. Keep the strips even to ensure uniform baking in the next step.
Lightly grease wooden rolling pins or heatproof cylinders. Wrap the dough strips around them in a spiral, slightly overlapping. Press gently so the dough adheres without gaps. Brush the surface with melted butter before continuing.
Roll the wrapped dough in caster sugar, ensuring an even coating. This sugar will caramelise during baking, forming the classic crisp exterior. Prepare your oven or grill for baking.
Preheat the oven to 180°C or use a grill. Place the cylinders over a baking tray so they can rotate freely, or turn them by hand every few minutes. Bake for 15 to 20 minutes until golden brown, rotating regularly for even caramelisation.
While still warm, roll the baked cakes in your chosen toppings such as cinnamon sugar or chopped nuts. The heat helps the coating stick beautifully. Allow to cool slightly before removing from the moulds.
Carefully slide the kürtőskalács off the moulds and serve warm. Tear into sections rather than slicing to preserve its soft interior. It pairs wonderfully with coffee or hot chocolate, and is best enjoyed fresh when the exterior is still crisp.