I start by activating yeast in warm milk until it becomes foamy and fragrant. Then I mix it with sugar, eggs, butter, salt, and flour until a soft dough forms. I knead it until smooth and let it rise until doubled in size.
I beat softened cream cheese with powdered sugar and vanilla until creamy. This mixture should be smooth and slightly thick for easy spooning. I keep it chilled so it holds shape when baking.
Once the dough has risen, I divide it into equal portions and roll them into balls. I gently press the center to create an indentation for fillings. Then I fill each with cream cheese and fruit preserves.
I prepare streusel by mixing flour, sugar, and butter until crumbly. I sprinkle it generously over each filled kolache. This gives the final bakery-style crunch and golden texture.
I bake the kolaches until golden brown and slightly puffed. The aroma fills the kitchen with sweet, buttery notes. I let them cool slightly before serving warm.