In a small saucepan, heat the milk over low heat until just simmering. Scoop out 4 tbsp into a small bowl, and let cool until lukewarm. Add the sugar and butter to the remaining milk in the saucepan. Stir until melted. Set aside to cool.

Sprinkle yeast over the lukewarm milk in the small bowl. Let stand for 5 minutes until dissolved, stirring only once.

Sift the flour and salt into a larger-sized mixing bowl. Make a well in the centre. Add in the dissolved yeast, beaten eggs and milk mixture from the saucepan.

Gradually draw in the flour and work it into the other ingredients to form a smooth dough. Knead for 5 - 7 minutes until very elastic and sticky.Cover with a damp tea cloth and let rise in a warm, dry place for 1 - 1 1/2 hours, or until doubled in volume.

Meanwhile, grease the mould with extra butter. Place into the freezer for 10 minutes or until butter is hardened, then grease with butter again. Set aside in a cool place until required.

In a small bowl, pour enough boiling hot water over the raisins to cover. Allow raisins to plump up.

When dough has doubled in volume, knock it back lightly with your hand to push out the air. Drain the raisins, reserving 8 of them, and knead the rest into the dough with the chopped almonds.

Arrange the whole almonds and raisins in an alternating pattern at the bottom of the mould. Shape the dough into the mould, cover with a tea cloth, and leave to prove in a warm, dry place for 30 - 40 minutes, or until it rises just above the top or rim of the mould. Meanwhile, pre-heat oven to 190 deg C (375 deg F).

Bake the kugelhopf in the lower one-third of the heated oven until puffed and browned, and the bread starts to shrink from the sides of the mould, about 35 - 40 minutes. Remove from the oven, and let it cool slightly. Turn out onto a cooling rack and allow it to cool completely. When ready to serve, dust with icing or confectioner's sugar (optional). Kugelhopf will keep in an air-tight container for 3 days.